#1 - Vanguard is an index fund. This means that dollars are designated for investment across industry/sector/mkt cap group. It is not an individual investment manager decision. We won't know until they file for 4th qtr, due by February 15, whether or not they are still holding. The institutions that matter are those like US Global, Van Den Berg, Sun Valley Gold, and Royce. Those are managed funds.
#2 - You need to understand the GF deal. From the PR: "The Company issued an 11% Senior Secured Debenture due 2021 in the amount of $10,723,000. The Debenture is secured by the pledge of the equity interests in all of the Company’s subsidiaries and substantially all of the Company’s assets." This would indicate that they don't have much to lose. If CMI fails to make the required payments, GF Capital owns everything.
#3 - I am fully versed in this Company and its potential. I have been invested here since 2008 and have a substantial amount of money at risk. My issue with your original post was the better than $10 "fair market valuation" you are insinuating without proper metrics.
What you are failing to recognize is that it is impossible to base any valuation on the 3.2M oz. First, the ounces include silver ounces converted to gold equivalent base on "[1] Gold equivalent ounces were calculated using January 31, 2013 London PM prices of $1,664.75 per ounce of gold and $32.03 per ounce of silver, as published by kitco.com. This resulted in a ratio of 51.97 ounces of silver per equivalent ounce of gold, without taking into consideration the relative recoveries of gold and silver. The Company’s current estimates for heap leach recovery are 70% for gold and 45% for silver."
Those prices do not remain the same today. Nor does the conversion ratio. It now takes 69 ounces of silver to equal one ounce of gold (as opposed to 51.97 ounces), so the 3.2M ounces no longer stands. Further, you fail to account for the recovery. Originally, they were looking at 70% for gold and 45% for silver. The gold recovery ended up being much better at around 85% and 57% for silver. Now, let's take those numbers and apply against the total resource, measured, indicated and inferred.
Gold = 2,582,000 * .85 = 2,194,700
Silver = 22,890,000 * .57 = 13,047,300 / 69 = 189,091
So, we have a possible 2,383,791 recoverable gold equivalent, not 3.2M ounces.
I also understand the difference between a resource and a reserve. I also understand the enormity of infrastructure, permits, legal, claim and a myriad of other costs associated with mining.
BTW - per the Fact Sheet on the home page of the website, the company is showing Common Shares Outstanding of 188.7M.
Again, people should read the reports filed by the Company and direct questions to the company with regard to valuations, cap-ex costs (which they have not stated) and the like.
