Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
" It looks like to me that they got the bridge loan because they are probably running out of money. "
Gee,...What an astute observation.! ,.... yes,...they have money problems .I challenge the poster that calls cash shortfalls .... bankruptcy , to find an oil and gas junior that is not having cash flow problems. Dejour is on stable footing.
With O&G prices so beaten down ,They likely do need a little help covering G&A for the rest of this year but I believe 1.25 M will be going for their share of a Mancos well on the Northern Lease ,likely in the 3rd quarter.
Reserves are going up considerably but because they are only worth half as much, the price settles in with O&G market conditions.
The company 's mineral wealth is growing and NAV declining. That's the gist of the newest Zacks report. Notice how the Canadian target price is higher .USD is not in Dejour calculations on NAV .Its all in Canadian.
All this means is...analysts report the facts but obviously like the Blue sky potential at Dejour,enough to offset the decline in O&G pricing ,otherwise we would of had Zacks placing a 30 cent target price .
The key is for the company to balance the budget despite market conditions, get debt finance and start poking holes all over Woodrush ,Roan Creek and/or North Kokopelli. ..and start doing things a lot ...quicker Thats the order for near term success ,in my opinion
That's right Harold , I do see the potential for a 2 dollar share price .
I'm also convinced other energy companies see that enormous upside at minimal risk.
Roan Creek is the greatest "discovery value " at Dejour's claims and I would think it wise ,with NG prices low ,to keep it at 100% interest.
Woodrush seems to be (with present hydrocarbon forecasts ) the best "income value" Cash flow with low Capex , makes it a favorite for debt finance ,especially if oil goes up quicker than NG ,and I'm sure 99% interest will not change.
Everything is finally going solidly forward ,despite the O&G prices . That is a good indication that the market will realize the hidden value or already has ,but is stalling investment out of fear ,either in the energy market as a whole or in poor past performance of the stock.
Who really knows ...
The mixture of NAV and Mineral Value has been mixed into analysts saying between 50 cents and 68 cents ,so I guess I can't argue with the Pro's...
However,.. those pricing models are based on minimal value ...of essentially everything and in this market of low commodities ,they are in my opinion ... accurate
The value of assets in the ground ,with ever changing Proven Undeveloped Reserves to Proven Producing Reserves is expanding , but we need a positive macro environment to affirm the value.
1. The Company must continue to have "all in costs " lowered and have Reserve data , go higher (as they are )
2. The company will then, be in a position of strength from a lenders point of view ,therefore the lender will engage Dejour , in debt finance , at extremely opportunistic terms.
3. Drill and develop the most advantageous and productive parts of the companies portfolio being 1.Roan Creek 2. Woodrush and 3. North Kokopelli (mainly in the North of Koko ,to satisfy the lease ),which will escalate the mineral wealth in the company ,like never before . By the time these projects are completed NG and Oil will very likely be much higher ...2016
4. 2015 is a great time for expansion ,because costs are cheaper and all the preliminary work at Dejour ,....IS DONE.
The Company could easily be valued at 2 dollars a share with the present share structure in 2016 ,in my considered opinion . Very appealing for American Investors ,who want to hold long term (1 year minimum )
The capability of producing bigger "profits" ,through sale of NG products is partially out of the companies hands,.. if NG prices stay low, however the best they can do for the near term future is to raise capital through debt finance and go after the biggest bang for the buc,which is Mancos at North Kokopelli and/or Roan Creek....
As far as Oil , Woodrush offers excellent opportunity for inexpensive vertical wells that are proven steady producers ,with infrastructure already present . All 3 developments rest clearly on the macro environment for 2015 , in overall hydro-carbon demand . A low cost producer can do well in this environment and Dejour seems to be initiating cost cutting measures wherever,and whenever possible. They actually began reducing "all in costs" ,a year ago . (Jan. -2014)
I have been critical of the companies "Expenses" ,in the past ,however with more revenue and smarter use of capital ,it seems Dejour is finally on the road to achieving a share price equal to the value of their assets in the ground . The value of assets and competence of leadership in managing those assets is clearly being recognized in the O&NG community. Dejour is doing better than the majority of O&G companies ,( at any size ) , with the toughest commodity pricing in 10 years.
The Mancos test is at about 13,000 ft. I can readily understand something not being IDEAL, in January ,.... in Colorado .
The Dejour Yahoo board seems to be a ... mix of a few diligent investors seeking better understanding of their investment and some of the best examples of pumpers, bashers and libelists ,...on any forum ,anywhere . Somewhere in the mix ,I agree we can sometimes get information that is useful. There are a choice few posters , that are interesting
My understanding is a team of "consultants" (everybody seems to be a consultant in the contracter world) ...these days has been hired to do the Kokopelli work for Coachman,Dejour and Brownstone . Kevin O'Connell,Rick Opert and Bruce Kelso would be the people to ask of any news ,but I'd guess they'd be pretty vague. Everything to do with Coachman/Dejour joint ventures seems to be executed with secrecy ,which might be because of the fact that Coachman is a Private entity. I'd be happier if Dejours next partner was a PUBLIC entity,or better yet no partner at Roan Creek at all.
Coachman seems to be , an impressive Company . Generally in the Junior Resource space ,when a minor teams up with a major ,the minor will let everybody and their mother know about it . It breeds a certain level of confidence in the micro cap and usually that is telling in share price . The Coachman effect on Dejour (because of the way the relationship was handled to the press ) was the opposite .
It is in fact ,a good example of how and why the Yahoo board breeds so much nonsense .
No doubt Coachman will finish the 16M in expenditures ,or the deal for 65% ownership would be incomplete . If Coachman wanted to put off finishing the 8 production WF wells ,I don't see how that would be advantageous to them. Labor,Rigs ...general costs should be going down and that should reflect in how many WF wells they should be doing ,with their "earn in money".16M
If the Dejour shareholders are given ethical fiduciary responsibility by the operator , everything should be working out in our favour. The deal was for Dejour to be carried for 16M "costs" , with the estimate on 8 WF wells in full production and a Mancos Test well ( within of 1 of the 8). All parties best interest is served by completion of the deal. IMO.
I don't think anybody here can say I've made a habit of defending the company .
I've posted some very positive and some equally negative comments but .... in the case of updates to the Kokopelli development ,I'd say 2-3 months is an accurate time to expect a completed well ,then before all data can come out ,it needs to operate for about a month. The 8 WF wells are likely almost simotaneously being developed so I'd think when the results of our 16M dollar development come ,they'll be coming in droves.
The Company cannot put out information that is not compliant with 51-101 regulations ,which do take time. Bottom line is the only information an uncompleted project can publicly announce (that is unfinished) is failure . A Dry hole ,some un forseen complications ...etc.
The fact that nothing bad is being reported means things are likely going as planned and the company is more eager to the report good news ,when allowed ,than any bad news.
...once the operator has completed the required expenditure to earn its interest, "
He means the private partner (operator) is required to finish the 8 WF wells at no cost to Dejour .That is the earn in for their majority ownership. 20M =,4 M went to Dejour which paid all U.S.debt and 16M must be spent on 8 Williams Fork wells @ 8400 Ft and 1 Mancos Test for production @ 12,750 FT
We will earn off our 25% of these wells
The Williams Fork is rich with liquids
I agree Harold. I think Dejours future might be gearing towards Canada ,more than Colorado . I'd happily except 40 cents a share and after the company holding onto 10M for Canadian expansion,give us the rest . Just a hunch that a bigger producer (possibly even a Private Company) might take a stab at grabbing the Colorado assets . If the share price is 15 cents or so, 40 cents sounds reasonable for M&A ,but .... if the insiders are not doing well enough,we will likely never hear about it. I think this has happened with Dejour ,previously.
The company assets are in the best position they've ever been ,for huge growth when O&G rise.
The next 6 months were to be the re-evaluation of DEJ shares ,until this O&G sector decline showed up. It really changes nothing as far as mineral value of undeveloped property .. Dejour could be targeted for a cheap buy out in the next few months,in my opinion. The debt is extremely low and production is becoming cheaper and more prevalent so... others will take notice. Existing Turn -key operations with huge undeveloped resource upside are exactly the M&A that is looked at in these sorts of times.
The only downside is we could be bought at far less, than if O&G were at more normal prices. My estimate is DEJ should hear an offer of about 40 cents ,...soon
The question is,... will we the retail shareholders ever hear about it ? I seriously doubt Executives would be interested at selling Dejour for less than 80 cents and if they need to wait a year ,they likely will ,...after all ,last time i checked they are doing Ok with Executive Compensation. Optioned Shares are a plenty and the Directors and Management likely want as much value per share as they can muster.
Finally ,.... a decent article spelling out the value . Every expert that looks at the ASSETS of DEJOUR comes to the same question . Why isn't this at a dollar ?
The hidden wealth of Dejour in my view ,for the last year has been in Roan Creek . I'm glad to hear Hodgkinson is putting it as a priority. HALF a BEAST would take us to a dollar IF we do it ourselves .
Roan Creek 100% interest
Good volume and in the right direction. Maybe something of a beginning to a move upward ,even if the overall market goes lower. The assets got to be on knowledgeable investors mind s ,when the price hits below 20 cents.
Mineral assets are worth over a dollar a share ,but 40% discounts being applied to O&NG reserves mean we are still valued correctly at 50-60 cents,even with bad overall markets.
I think it is a buying opportunity but ,,..... the share price stagnates because larger investors continue to have no faith in the earning power of the assets,even though the value of mineral assets priced with a 40% discount is still above 2 out of 3 recent target prices.
The Executive Compensation (thereby dilution) is too one sided. Not enough gets done for the dollars spent .Too much is spent on human assets,not enough on mineral assets.
If Dejour was run leaner ,several larger O&G companies would already have staked the company. (no need for these ridiculous insider placements,that rob the company of value ) Even at 50 cents a share ,it's cheap.
Stockrush,
"Regarding your question about separating assets. Mabye a spinoff like that can be good for shareholders. And that is mostly good when the company is developped in advanced state being profitable and having a solid base of cash to survive. On the other side if those assets are under one hat that's better IMO coz of more efficient expenditures for G&A."
The spin-off scenario sometimes puts too much value on one side. I would be more inclined to actually separate assets. Canadian vs American. Most would believe American assets are the value at Dejour,but I'm beginning to believe in the possibilities of uncommon value through exploration lies in the Deep Montney. The potential to sell your oil or gas at a premium is present and getting better.
The point is,.. if you had 10,000 shares and 5,000 went to a newco involving Woodrush and 5,000 were to go to a newco based on N.Rangely,Kokopelli and Roan Creek , it would seemingly be lopsided but... IF a few new deals were put in motion ,shareholders might actually begin to wonder about that reasoning.
IE; Suppose a million was spent on determining the value at North Rangely and it turned out it was indeed amenable to ISR ,then its net worth would be a lot more. Enough to likely give 2 new co's some cash and pay off the debt for the Canadian newco. All of a sudden the 2 separate assets seem a lot closer in value . Both enjoy small revenue streams and both would have an immediate opportunity to greatly enhance their income by a new discovery well in very opportunistic lands ( Woodrush-Roan Creek ) and both 100% owned. Whatever the case ,any current shareholder of Dejour would own equal shares in each. The key to success would be to manage the 2 newco's efficiently.
In other words ,I'm willing to give the current team a chance to manage 2 smaller companies for less than they currently manage 1. If they really care about shareholder value ,they would agree to a deal structured in this way ,because it really could be good for everybody involved ,including themselves . As Craig Allison points out ,they are shareholders as well.
Another deal might see Woodrush assets merge with another Canadian Producer to form a new Canadian company. (prior to the separation of A&C Dejour assets) ( plenty of excellent O&G M&A potential,in that part of Canada )
I can poke all kinds of holes in my own argument ,I'm really just trying to make more people pro-active in determining the fate of Dejour.After all ,I believe the retail investor owns better than 90% of the company and we need to speak out and be heard. The reason this company has so many shares out /with so little accomplished these last 5 years ,is partially because shareholders in my opinion ,have been largely ,ignored.
Dejour holds great promise and I truly believe the company or company's can be successful for the remaining months of 2014 and all of 2015 ,but in my opinion an intolerance for more of the same, greatly increases our chances at success.
.
A lot of good opinion Harold ,
"All in all the company is in far better shape today than it was two years ago coming off a bottom in NG prices. No one can say that the company is in financial distress. So the outlook is improved, but as we all well know the ONLY thing that matters at the end of the day is the stock price."
I'm in 100% agreement with your above statement.
"But personally, I'd love to see a 5-for-1 in 2015 after we've got additional cash flow and become a positive earnings per share stock (which is extremely rare for a micro-cap energy company). I would prefer the share consolidation because I believe it would put us in a better position to pick up additional institutional ownership, most of which won't touch a stock under a dollar."
If a share consolidation ever happens ,it had better be when the company is producing enough income to offer a dividend ,....otherwise and make NO mistake "Dejour Executive's " are well aware that a share consolidation prior to dividends,... will be a negative to the share price growth,a grey window of opportunity for more dilution and cementing the company in a cyclical ,habitual form , that institutional investors will surely stay away from,permanently. The argument that institutional investors will buy stock , only if it is at a dollar or more , is proven to be bogus.Sure ,JPM or GS ,likely won't be looking at us but many others (hundreds of others ),which,.....BUY untouched Value..... will. They need to see discipline,from the Dejour team.,imo .DEJ can reach a dollar ,with no share consolidation. This would be a catalyst to uncommonly high growth and Institutional investors would eat us up.
I believe institutional investors stay clear of Dejour ,because the most critical element of the " handling of finance ", was ignored ,IE; cash for exploration & development ,instead of less important issues like executive talent ,..... IE; insider dilution , High End Executive Compensation at times when it was undeserved.
The Executive Compensation could be as high as it is now (even higher) IF,... the shareholders were part of the income IE; Dividends.The company has a ways to go .
North Rangely "COULD BE " a great property and its value is still unknown until we ascertain whether or not in is to be mined traditionally or pumped in an procedure common to the Athabasca Basin "In Situ Recovery" If the property is amenable to ISR ,it could be worth a small fortune ,otherwise its pretty common in the American mid-west and only an insanely high amount of recoverable reserves will make it worthwhile .IMO.
Hodgekinson might have 8 million shares ,but the fact is he and other Executives/Directors have participated in selling free options given to them by their own committee . The worst of it is ,they sold into the rally's.I don't consider that protecting shareholder value,rather protecting their own interests. That aside,...I still believe they are competent managers of excellent properties and maybe we will see more of the latest Woodrush news ,which I've suggested is very promising.
Dejour has a chance ,if managed properly ,to be a 1 dollar stock ,as early as year end ,imo. I'd be happy with 60 cents ,...and go over a dollar in the spring ,pending developments.
What do you think about separating assets. ?
Woodrush (Company A ), is now clearly a developed /producing property that has a lot of upside with new exploration (deep wells).
Kokopelli would be the producer /revenue for Company B ,while Roan Creek and North Rangely hold magnificent promise .
Both companies would have a revenue stream,both an excellent chance at a big new score.
"They have the properties to succeed ,if only the Directors and Management will allow the company's revenues a chance to do something for ALL the shareholders. Like self fund some development......
Are they reading my posts ? The Woodrush development and how it will be paid for is very encouraging. I give the Executives credit for a good move ,definitely a better beginning.
Dejour has loads of good news and there is no reason to believe it won't continue ,...but.... With revenues growing ,it seems the Executive of the company see no reason to lower their Executive Compensation . The E.C. ,which in my opinion and most obviously the opinion of Institutional Investors ,...has been grossly inflated ,these last 5 years or so , to be nearly the same as Production Companies that make money and even pay shareholders a dividend.
Now that Dejour likely will make money and have positive cash flow, Why would they decrease their E.C. . ? I mean , they can always dilute if enough revenue doesn't cover G&A. Sad .
Dejour is a Strong Buy ,only because the assets are currently worth about 4X the share price . Even with as high as ,40% discounts being placed by industry pro's on evaluation of mineral assets , it still says Dejour stock is worth 60 cents a share . The 3 industry analysts ,presently covering Dejour , seem to agree.
The analysts want what I want. An Executive team that can make Dejour a profitable long term investment. They have the properties to succeed ,if only the Directors and Management will allow the company's revenues a chance to do something for ALL the shareholders. Like self fund some development ,instead of worrying about how to keep executive talent ,as if that's really an issue .
It is my contention that Dejour is a STRONG BUY , because the natural gas industry is only going to improve and the large retail base can eventually force the company Executive to put Dejours assets ,....in play.,...I just hope all the value hasn't been surrendered to the chosen few. Time to act is fleeting ,imo.
The "extreme irony " , in all of this is that much of the material presented is known,in bits and pieces , by many long term shareholders yet,; They continue to support Directors .
We as a retail unit , cannot seem to vote correctly so,.... somehow in one of those very unfair realities ,Directors and Management are given license to kill or license to resurrect ,whatever they fancy and there is not one single thing I as a shareholder can do ,...except sell or hold for a possibility of a larger miner becoming interested enough in Galena to actually pay a premium for the company ,which of course would be a lot more realistic if we had NO Directors ,If we were "in play" For sale to the highest bidder. I think we could rustle up a dollar a share ,no problem but with the baggage ,we likely get a wait and see attitude.
Other silver mines are selling for extreme discounts in the mid west USA . A smaller silver mine in Colorado has sold for about 65 million. It can produce at less than Galena but has far less resources (at least what is known) I believe Galena could be sold today for a dollar or about 90 million by the time every party is completely out. I would be satisfied ,just to get that much ,considering we are at 40 cents.
"Mabye not beacuse they are already satisfied with their internal profit sources with stock options , warrants, etc."
That seems to be the way of it. In the long term ,the executives want the share price to go higher ,no doubt . In the meantime ,they can pretty much sell for profit older options and expect to have replacements ,effectively looking like "NET buyers".
I think the self serving strategy has hurt themselves and more importantly, to me , the retail. I have voted to WITHHOLD and voted against any RS ,since it is in my opinion , a recipe for more unnecessary dilution.
I believe Dejour executives are competent and believe the mineral assets are grossly under valued (as per share price). We have waited 8 years since the Colorado properties came into the Dejour family and we have yet to see results that have benefitted the share price .I think we need a new direction,a new corporate strategy ,which truly puts the company (therefore ALL shareholders) ,FIRST.
If Dejour management acted in a responsible manor,they would be trying to have insider buying become prevalent , in order to raise share prices thus ; when equity finance was needed ,the company would dilute less.
Instead their strategy seems to be allowing the share price to fall or stagnate to levels where insider options can be opportunistic to themselves and at the same time raise needed capital ,without cost or time of private placements. (even though their options are a placement of sorts ,.... without a lot of the outside influence).
I understand their theories and practices and quite frankly , don't agree they are doing what is best for the Corp. but instead what is OK for the Corp. and very good for themselves. It is a transfer of ownership from retail to insiders at the expense of everybody involved ,including of course (to a limited extent themselves) ,since they too,.... are shareholders .
Your question seems to be asking something ,you already are convinced is correct . Following technical charts might lead you to the low ,in which case you would buy. I would rather specifically , buy at the same levels as management ,which is why the share price stagnates . It is why their methodology ,of buying through executive compensation is bad. Market players like you and I "will only" or better said ,"should only" buy at levels insiders accumulate at ,...and no more. Sad reality
Fundamentals are how to play Dejour ,not technicals, that can so easily be manipulated ,in my opinion. The fundamental truth is Dejour lives and breaths on the actions of the few executives ,which is why we stagnate at every upturn ,which despite asset value screaming out to the market ,...This is a BUY, we suffer an endless amount of traders watching the insiders and reacting to their flawed strategy.
I'm afraid it did no good at all. Not really sure what to make of this company. If silver goes up ,USA will go up . Other than that ,I can only hope for a merger,even a mediocre one.
Some bigger producer must be interested in Galena ,if the spot silver price sentiment is for 30 plus over the next 12-18 months. Of course the longer it takes to be acquired ,the less our value is . Hard to believe we were at 30 million cash,no debt and about 62Million shares fully diluted ,just about 2.5 years ago. they were starting a search for a new CEO. A relatively simple task ,which has resulted in the company before us all today.
rru2s , 2 excellent posts. Ihub has a better format than Yahoo and i'd like to participate here more , if there were more posts with the fundamental approach at trying to figure out Dejour energy.
not an easy task
The Conference call had Hodgkinson very much against a share consolidation (RS). The only instance (not likely) ,where this would happen is if the company needed to do it before moving into a major deal or joint venture. The NYSE is not asking ,so we are not offering .I'm a hundred percent against any share consolidation and have voted in that regard. It serves nobody except "dilution " and I do not believe any deal is that good ,that would insist on an RS.
Retail and Institutional investors are simply waiting for the next great deal. If it is a deal like SECO, we will perish,if it is a deal like I believe is possible with this company ,then we will travel up to between 50-60 cents a share ,with existing share structure in place. That's the math,that's what makes sense and this scenario has not presented itself to the public previously . The company is actually in a better position than it has ever been in,we simply need proof of strategic,non dilutive development.
Dejour now has the company saying at a 10% discount that shares are worth .73 cents . We have See ThruEquity and Zacks both valuing shares at over 50 cents ,for an initial target. As developments continue we should see those numbers rise. Nobody can argue with these very modest valuations ,therefore I think with the solid future in energy development in both British Colombia and Colorado ,Dejour should fair better than its competitors because of its diversity. Our share structure is at acceptable levels for exchange requirements and paying dividends down the road where we will go ,so long as assets are developed as planned.
Dejour is fundamentally a strong buy ,with the only downside being technical trading which slows its share price appreciation.
Retail investors in USA should strongly consider ,
Voting WITHHOLD to all Directors
There are good things that have happened ,due Management and Director involvement but lets not forget ,.... they are paid very well to manage and direct.
The obvious asset value loss of the commodity ,since this team entered the arena has been overwhelmed by the loss in share value through dilution ,due a directive that seems to slowly transfer ownership from retail to insiders. The losses that have occurred to retail investors since the merger of RX and USA have been staggering .and not wholly about the commodity. That is very evident with competitors that have previously been subordinate ,now command better value ,with ease. We need a new direction ,in my opinion.
Do your research and vote.
JimmySnoozer ,
My guess would be that anyone voting in a positive light for these Directors and their deals are investors who are buried and simply do not want to upset any positive sign of recovery. Understandable ,but truly naive .
The assets of this comp[any will become instantly marketable to the mining world if shareholders take a stand and end the dilution of our VALUE,in my considered opinion.
We seem to be in the minority right now ,I'm hoping for a change to long term investor attitude .If we all want to profit from a rise in silver someday ,it is best to get Galena in the hands of people who are shareholder friendly,otherwise no value will ever be recovered. I think the day in May is our last chance.Sprott will only own 20% of the stock IF ,we vote yes to this latest insider deal.
I agree with your analogy concerning options /awards etc....100%.
"I will be voting in favor of the warrants. I know that the Company has screwed over its shareholders through a series of bad financial decisions. That is clear"
So why go along with it Retiredyoung ?
I didn't say I would be against dilution for a good cause IE; Drilling and development etc...
A line in the sand must be drawn,imo.
Believe it or not ,there are plenty of mining executives available that would be happy to take the reigns of Galena. Private Placements with accredited investors can raise capital. In Fact ,had the company taken my advice months ago ,we would strategically have NO DEBT and a less fully diluted share structure . They were protecting executive comp.,... imo.Extending a loan, royalties,interest ..etc etc ... Absolute insider garbage
Please consider voting these Directors out and finding new equity finance. We have likely,... one last opportunity.
Put another way maverick,.... Times up !
Do they ever make a deal that is considered "Good"
I think Private Equity looks at May annual shareholders meeting as time for more candy .
Santa on summer vacation.
I encourage ALL USGIF-USA shareholders to vote against any new finance deal and vote against any and all Directors. Somewhere in the archives I've talked about giving them a chance to turn this ship around .Well .... minimal shareholder equity has been created since , ,so ..... TIMES UP !
Nothing seems to change ." excerpts from old posts"
"The retail shareholder base here is pathetic. How many times do we need to get kicked in the head ?"
"Time after time our debt brought,... on by the RX merger has cost us so dearly. You would think they'd be inclined to clear it up. This BS about protecting the balance sheet is better said ,They are protecting their salaries. We could have diluted the same amount as what was paid out in bonuses(warrants), for lending money @ 12% and cleared ourselves of debt. Instead we need more cash flow and the debt still is present and the dilution is already sewn into the share structure."
"The retail shareholder base here is pathetic. How many times do we need to get kicked in the head ?"
In May ,it is time to atleast try and send the agents of this company their walking papers,.....
Otherwise the chances of getting our investment back from the days of US Silver is too high.
Galena has the potential to still attract management that could make it the best silver producer in the U.S. ,just in time for an aggressive silver breakout. ...2 years, imo. A management that is not only good at mine development but also shareholder friendly. The latest big deal can be stopped .Sprott does not have 20% unless we allow it ,through a vote at the "Day in May"
Sprott involvement in US Silver has been a disaster for our retail shareholders. I cannot understand how anyone could argue with that fact. Why we would encourage more involvement from a Corp. that has been, a large part of our retail investment nightmare,is beyond common sense.
Whatever some very biased report says ,the fact remains natural gas will continue over 4.00 mcf. More pipelines throughout the U.S. and Canada and processing facilities should push prices over 6.00 mcf within two years.IMO,it will likely stay above 6.00 once certain infrastructures can be completed.
Bias reports come from the manufacturing industry within the U.S. ,who want prices as cheap as possible and are opposed to exporting.
"Giving up a net smelter for a loan, or 10,000,000 full warrants for a loan, or millions of options on a regular basis, and the loss of equity traded for Drumlummon does not appear to be a company that is working to building shareholder value."
Agree 100% ,it sounds more like a company executive "daring" the investors to give them a hard time ,protected by weakness of silver and the possible advantageous turnaround silver spot could create for retail.
The company has some of the best silver assets,certainly for the price ,in the world....executives know this and in my opinion are as a unit opportunistically growing their own wealth at the expense of retail.It never ceases to amaze me ,the arrogance of these people.
Can the public honestly look at these executives and believe they have been equitable in their fiduciary responsibilities to the retail shareholders,since the merger and for that matter 1 year prior ?
Time after time ,opportunity to recoup shareholder value is missed .It is obvious to me the only way I will ever get my investment back here is ,...if silver goes parabolic ,which in my view is no time this year. We (executive with retail support) ,could be building a financially sound company until silvers inevitable rise ,.....instead, all that seems to be built is the insider position on the assets. , while the retail position dilutes.
JimmySnoozer...........My guess would be retail investors don't care about the companies condition, due managements financial maneuverings, because they are all caught up in the euphoric possibilities of silver rising . Lets face it ,even badly managed companies go parabolic when the commodity turns.
I expect to see silver with some gains this year but any euphoric rise is way down the road and making the company executives realize, they don't own the majority interest,therefore unnecessary self serving policies are a detriment ,.. in long term success ,...for everybody including themselves ,should be a factor in their decisions.
Operationally or mine economics show US Silver being run well , but financially it is self destructive ,in my opinion.
Tragic.......... Imagine an Administration so positive about the companies future that annual option awards be (in this year ) 1 dollar. The market sentiment would be a strong buy .
What some investors don't seem to get,...is that USA needs to rise much faster and higher with ascending silver spot ,because it has fallen more than its peers .Performance of the share price did not need .a 49 cent giveaway,just as things seemed a little brighter.
Greedy and stupid is no way to go through life ,if it can be avoided.
Since Drumlummon has no mill , the possibilities are better oriented for a nearby company that does.
It's all about the deal . Some want the deal to go through ,some don't. The question is really ,why the hold up ? I'd like to hear some news .
The sad share price, ...comparatively with the company's peers has less to do with silver spot price and more to do with the markets sentiment towards the management. The sentiment is very bad ...,so the relationship between retail shareholders and insiders has to be repaired BEFORE any increase in share price becomes evident, because of silver spot price.
Otherwise we will continue to be vastly undervalued even if a resurgence in silver comes. That means that long term shareholders that do not have the means to buy more shares at lower prices will continue to suffer for being the best support this company has had,since the Galena was brought back online .
Retail shareholders should be voicing their complaints and if their dissatisfaction towards insiders continues,they should start taking measures now ,to relieve these directors from their positions to better serve the company and its majority interests ,which IS still retail common shareholders.
You could be right Montanore but...
Gold manipulation is not a phenomenon that is restricted to profiteers from the West. The Eastern nations have an interest in gold and if they want to accumulate,it makes sense to buy it cheaper. Since they are the only nations that have the financial muscle to invest in a longer term strategy to acquire gold,it also makes sense that they control where the bottom will be.
The legal gold and essential commodity related manipulation that is present in, the markets today is condoned by and participated in from the West and in my opinion now controlled by the East. If you think through it all ; 1. Where's the financial backing ? and 2. Who wants gold to return to under 1000/oz ?
Answers are 1. China 2. China and the West
Buying or selling gold in markets throughout the world, by standards of international law says ,IT MUST BE REPORTED. (by the Bullion Bank handling the transaction) however...
Leasing gold to a Bullion Bank requires NO REPORTING at all.
The largest Bullion Banks in the world are out of London (which is where the largest gold transactions occur ). Some very familiar names are among the top 6 Banks ,known by major retailers of bullion and coins as;
(The big six clearinghouses )
1.HSBC * 2. Barclays Bank PLC 3.JPMorgan Chase Bank 4. Scotia-Mocatta 5.Deutsche Bank AG 6.U.B.S.AG
* Hong Kong and Shanghai Banking Corporation
If you understand the principals ,you can better comprehend the scheme and how legal gold manipulation will continue....
(Remember that Central Banks in the East are just as likely ,if not more likely to deal out of the watchful eye of public scrutiny ).
China's Central Bank can pretty much do whatever they want and since the days of Hong Kong and Imperial rule ,the connection between Britain and China is unparalleled in business that today we would consider manipulation,legal or not ,it exists and has for centuries. The U.S. has been a stand in for the last 100 years or so and like I said ,still an active participant.
maverick...
"Mark these words, golds going down along with the stock market in a way I think the government will not be able to control. The government created this crap, but governments do not make markets they are in unknown territory never before done."
southpen.... I would agree that gov't created the problems in financial markets but those problems were windfalls for years. In my opinion ,a disconnect between retail investors and Wall St. began in the early 80's. Some politico's decided that the U.S. and Canada might be better off as service economies. That caused corruption in the value of the USD, perpetrated by many Central Banks around the world. The idea being to lower currency value , comparatively to the U.S.
Fast -Forward to the Gold-Silver markets. Indeed the U.S. Central Bank has funded distorted values and the ability of Commercial swindlers IE;JPM & GS to earn by producing NOTHING. LONG then SHORT with no financial restrictions ,accomplishing nothing but orchestrated theft from retail investors.
However ....the latest devaluation of Gold is coming from clearing houses out of London. The biggest and right now the most influential in the gold market being HSBC. The most obvious affiliate of China's Central Bank. China's Central Bank has been buying gold produced in their own country as well as gold on the international exchanges (London being the largest) What the gold bugs fail to recognize is ,China and its affiliates are lending (leasing) that newly bought bullion to clearing houses (Bullion Banks) and it is used to flood the market ,thereby driving prices down (shorting) If you want something long term ,buying at top dollar in the short term makes no sense ,especially if you have the means to buy it cheaper.
They (Eastern entities )control the bullion markets because they have the means to do it. More means than any Bank controlled by the West or any Western Central Bank including the U.S.
The people at GATA know this but are too ignorant to publish these theories because they in fact --missed it. They continue to put all blame on the West and it is not only illogical at this point ,it is not fathomable.
Don't listen to the talking heads . Buying equities in the metal markets ,especially Strategic metals is better than the Gold Bug theory because it is the next most useful financial anomaly. I consider silver part of the next great wave ,albeit a lesser part than many other metals ,but certainly way ahead of gold .