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That's a very obvious conflict of interest,in my opinion.
If these guys didn't believe the share price will rise near term ,they'd never have the audacity to award themselves with these options.
I said it quite a while ago,that this company had been pushed way lower than it ever should have been and the options deal certainly gives an indication why officers of the company really didn't care. Absolute Greed.
With that said,I believe these guys know what they're doing,and have an interest in seeing the share price rise with the price of silver. Their reputations are on the line now. This is an excellent buy at 2.20
We have half the share structure of GPL and very clearly better production with more assured ,yet we are still just about 20 cents more. We should be about double GPL,imo.
Definitely more intrinsic value here, than Aurcana , Mines Mgmt. or Revett .All one has to do is closely dissect the competition.
I won't give these guys a pass ,just because they hi-jacked an undervalued asset but sometimes even someone you don't like can make you a lot of money.US Silver & Gold is on it's way.
"I never have been able to figure out why people are so against issuing options at current market."
then ,your part of the problem.
Are you kidding ? Option strike prices should ALL be at 100%,over current market price, vested over 5 years,with 20% being allowed to be sold (if they please), every year. This has been an industry standard that has been lost. It is ,only used for incentive options,which I understand(happily),USA will follow in accordance with . My question is ,What type of option are they calling this? Is it part of their pay ?
Don't you think we have a right to know ?
If options were given out at a strike price of 4.46 cents ,vested over 5 years,that should be an easy target for management to make good money. Most serious investors in mainly blue chip and NYSE stocks look for a 100% increase in portfolio every 5 years. That's considered successful.
This is a micro cap, with a non renewable resource . 500% PLUS, over 5 years would be considered successful. What incentive is there for these guys if all they have to do ,is get up to 4 or 5 bucs and sell big ? You completely misunderstand why options were made. They are not suppose to be salary,unless out of extra ordinary circumstances.
Normal procedure is throughout the 5 years ,they might be allowed to sell part of their options. At 2.23 ,well under where the average shareholder was robbed of his shares,they get a lot of free cash for literally failing. (new management MUST assume responsibility of the old)
A person that paid 70 cents PRE SPLIT,then has to get 3.50 post split,then another merger making about 4.66 , just to be sitting at the original investment , AND you want the perpetrators of such fine management to get options at 2.23.
My generous allowance would be 4.46,very reasonable and very close to the value that was being touted as cheap throughout the industry before the silver tanked. 70 cents,REMEMBER !
If these new managers don't believe that silver will rise exponentially over the next 5 years and that this is very likely,easily a 10 dollar stock ,then they should resign. Options at 4.46 would be appropriate and should allow them to make out very well, on top of salary and expenses. Your either an insider or an insiders mouthpiece,imo
1 institutional shareholder ,Empery Asset Management,bailed out because the short term return here shrunk. The big deal with DEJ has always been to exploit the potential of KOKOPELLI. With gas prices down ,there's really no short term flip for profit here ,because we are not drilling to the extent we could be,if a different gas price existed. .(only 1 well)
Empery buys in PP's and since their management of all their investments is not dependent on 1,sometimes it makes sense to take a loss in the short term and still position themselves for the longer term. (use the loss to an advantage)
All this means to me is that the likelihood of DEJ going over .45 this year has been diminished. Only a big deal ,like a M&A would change that.Their are a lot of gas companies out there that offer great deals right now ,so I expect a lot of volatility.
eik, I think that there is some very real increases in share price coming but I saw no advantage to the US Silver & Gold Corporation issuing options at a few cents over the current price.I read that incentive options would be issued at 110% PAST the current price. What kind of label do these options get ? anyone ?,If not incentive options ,What are they ? Could it be part of their salary ? Not unheard of but...as usual (lately) no answers to so many questions. We shouldn't have to ask for an explanation. If there is one already in print,then I'm out of line,otherwise I'd like an explanation of these options and I think all longs should make the company aware that ,"We are aware"
It seems several days have gone by and the share price is safely above 2 dollars,therefore ,if our new team is on the ball,an AMEX listing should be soon. Does anyone know if the new OTC listing is QB or QX ?
The corporation is worth more ,the shareholders are worth less. nice trick !
I read most of the SEDAR document you suggested.We don't have material proof that they have exercised any of their privileges yet,but they have certainly made it plainly clear that the common shareholders can like it or leave it. I found only the, "incentive options ",to be in line with my suggestions. A 5 year vesting period ,with an option price,a minimum 110% above the share price the day the option is granted. This actually ,is decent,other than the fact that the price is artificially low ,imo. I think it should be 110% above what they inferred the price should open at ,post merger.
The problem is ,How many OTHER kinds of options will be given. Shareholders seem to have no say in,really anything,concerning the options.
I've contacted the Ontario Securities Commission and have explained some of my objections. They are very helpful but insist we realize the difference between Securities Law and Corporate Law. Corporate Law is where a lot of my objections lay,however...
If disgruntled USGIF shareholders want to thoroughly search for Management not following guidance of the OSC ,we should carefully read documents on the OSC web page.
Go to
1.Securities Laws &Instruments
2. Instruments,Rules & Policies
3. Take-Over Bids and Special Transactions
Kokopelli had ,I believe two pads already built,in the liquid rich area of the approx. 4 sq. miles and has been permitted (42 wells with 10 acre spacing).Those pads would usually be a stage for 4 wells.There is almost no chance of a dry hole.Hopefully the well, will rival wells owned by Williams ,not far away.
Williams has postponed the development of their newer pipeline but I was told we can hook into another one they have or even Barretts..
There will be plenty of time to try again if a dry hole was hit but this is extremely unlikely. These are after all, reserves. UD Reserves can't always pin point Ng ,but being that they are in such a rich area ,it almost doesn't matter. I know Blacker will do/has done everything to make sure ,it's a good 1st hole.
Williams has had incredible results from wells ,close by.Exactly the reason we do not want to waste drilling these first 8 wells ,with prices so low.
Nothings ever risk ,free ,but this is about as risk free as it gets, in the oil/gas exploration arena.
My understanding is WOODRUSH has always been expected to do better in the latter half of 2012.The waterflood is working ,but it can only increase with permission of Provincial authorities. It has increased , therefore,oil production should begin to be better.I don't mind gas production being lowered,at all.
The company has to have clear and concise evidence of a material change to report with 51-101 compliance.
That's why ,not much information comes our way for long spells. They just are not interested in releasing fluff. The system of 51-101 compliance is very good because when we get something ,it's accurate and reliable.
The CEO of this company is a winner and wants nothing less than you do. Improved production, proven discovery of reserves and share appreciation to finally show the value of DEJ.If you believe the data,and the people,you should be able to live with the share price for a while longer.In truth,I'm very short on cash ,thanks to some despicable corporate shenanigans, elsewhere .I wouldn't mind the price staying sub 20 cents for a few more weeks,until drilling begins at kokopelli
I didn't find it,I was told it ,by what I consider an insider ,(not in management). There are a lot of insiders that, (technically ,are not),imo ,over at Dejour. I use to have a lot of problems with Inwentash (his buying and selling at inopportune times),but since he has reduced his holdings,I've come to understand why. He ,like others that participate in all the PP ,over the years are all into short term gains. That's his business and that's whats been happening over a DEJ ,in the last while. (probably over the last 6 months)
Until we move into profitable production and raising cash is no longer a complicated matter,we will be used by short term traders for many small gains. As the properties become more, "Proven Producing",the debt financing replaces the equity financing and insiders with short term financial goals will disappear. more longer term ,"Pension funds" replace , "Hedge funds" and our value becomes more stable.
I'll find out what fund it was.I know it wasn't dumping shares ,it was simply closing a position,that began in 2009. (through warrants collected by lending money) .These guys never lose on deals like this if you factor in their overall cost of shares so even sub .20 cents ,they can make money. My understanding is Fund managers are impatient for NG to rise. We figure about 6 months before NG (dry and NGL) ,become a profitable investment so look to the equities for Funds to invest in ,BEFORE ,that happens. Companies with huge undervalued assets are being monitored.
1 Institutional shareholder who has had as many as 8 million shares received through Private placements,has recently closed off their position.2.5 million have been sold off in the last week .Another large retailer has sold another 800,000 .These were investors into the short term flips and generally hurt this companies share stability ,more than they ever helped.I say,thanks for participating in Placements and liquidity ,but now it's time for serious long term investors to profit.
The prices of NG have hurt the short term prospects but over the next 6 months the best is coming for DEJ longs.There are no lease problems,cash problems or personnel problems.The company has never been a stronger buy. That's why insiders ,long the stock have been buying at these prices,and will continue as benchmarks come into fruition.
I agree Bud ,the practice should be illegal,especially when voting on mergers and acquisitions. These can fundamentally change the direction of a company,thus shareholders fortunes
I'm still at a loss, to understand Institutional's being on board for the, " FOR ",vote.Unless, they know something ,the common shareholders don't ,in which case , common shareholder inclusion was just a rouse. I don't believe ,from after the first press conference that it was known to common shareholders ,the small miner permit and lawsuit disclosures concerning Drumlummon. I think that would have made my impression of this deal sour from the beginning .I wasn't .I was optimistic ,until learning more. Check my posts.
Who knows ? 73% voted FOR ,but ,How many didn't vote at all ? (which ,my understanding means a share not voted counts as a FOR). Why ? Is this standard procedure ?
Could be . There is a lot of information that was presented ,like Pridham telling the voters ,they were at over 80 % (guess),FOR ,before all the shares were counted.I don't remember the exact number but it was unethical,imo, to put that information out there ,(trying to sway a vote AGAINST) People were convinced ,they couldn't win and WE almost did stop the merger.I believe we the shareholders of US Silver could have stopped the merger ,had we fair consideration.
I still find it hard to believe that 73% of shares were cast for this deal. Take away the last 3 months of screwing around with this latest BIG DEAL and we could have likely posted a profit. (1.5 M) WASTED,imo
Everything has been set up to make the 2nd half of the year look much better than the 1st.How could anybody fail ?
The only bright note is ,we should know that it is in the best interest of the new management to excel. I can't talk about the motive,yet,but the fact remains US Silver & Gold is an opportunity ,right now.
Chief Financial Officer ;Senior manager responsible for overseeing the financial activities of an entire company,which includes , SIGNING CHECKS, monitoring cash flow and financial planning.
All the detail listed points directly at the CFO as the person IN CHARGE and technically, RESPONSIBLE for listing requirements ,beyond being told to do so, by the CEO and/or the BOD's.
Responsibility maybe, but my point was in every decision there's got to be the guy DOING the detail after the decision to proceed has been made. In this case of listings ,this would be under the detail of the CFO. So you can blame it on the new CFO or Hopkins,I really don't care,the point is we are screwed. Any opportunity to BUY or SELL is gone for me.I cannot even trade directly on the TSX (which use to be the case when dealing with Scottrade),NO more. The deal is ,securities should be able to be traded via broker assistance ,when no other avenue is present. Not this time !
I thought we were to receive 67.7 percent of 1 share/ per share. I only received 67 percent. The bigger your numbers ,the more anger might rise. Does anyone else recall reading 67.7 % ?
Some very good points. I'm the options cop. The problem is ,I don't know how many options/warrants came with each person ,when the newco was formed. Where is the evidence that anything new was issued ?
Wrong. Chief means top. He has equal power of the CEO but must get approval,for AMEX and any other listings.If the CEO approves and even the entire BOD approves ,it could still be mishandled,though the CEO would have nothing ,in all practicality, to do with it.(he, as well as all BOD's would have to assume responsibility) No body ever TOOK responsibility for the AMEX and nobody will likely take responsibility for this latest mishap.If you want to call them Corporate blunders,go ahead.
When a BOD approves ,the practicality takes over.That's why the CFO is paid,to " actually perform the detail", of the wishes of the BOD. A mishap from the CFO caused a Corporate BLUNDER,How's that ? I don't know who's fault all these bad events are ,but I do know that listing requirements are under the job description of the CFO. I also know that outsider sources were offered and refused to handle the AMEX listing.
This must be hurting the bottom line on the share price. I am in Scottrade and they have NO idea when.If you believe in the new management,this is an excellent buying opportunity ,missed. If you don't believe in them then ,it's better not trading until the price goes up,anyway.
Are you so sure it's the new management ? CFO Hopkins is being temporarily retained for the transition.I think it possible this could still be under his jurisdiction. Was it not the CFO that was responsible for not properly coordinating the AMEX ? Who else would be responsible for these mishaps ?
David Bond is giving a bad response to US Silver ,because they did not except Hecla's offer. He's making a suggestion as if it was a merger proposition,as you know ,it was not. How any body can try and make HL a better buy ,at this point ,I think isn't doing the DD. Compare oz's in production ,oz coming into production ,and compare with share structures. 5X the SS at HL .Not 5X the Silver &Gold ,not even remotely close. Cash costs are artificially low at Greens Creek ,because they are using the roughly 50,000 oz of gold as a by product.
I finally agree with him about the RX acquisition (I hate really to call it a merger),more like we bought a management with some short term assets that could turn into something very good ,down the line .COULD!
In any case ,I've stressed that US Silver shareholders bought and PAID for RX Gold.
Kinda like your wife going out and making a deal to buy an expensive car ,that we didn't need ,but we'll buy it any way. Well,we bought it. It helps the value but is not like a dilution (because only the existing shareholders were diluted ,not the company)
Everybody I read, on all forums seems negative to the merger. 73% of all shares voted for this ? . It doesn't seem likely ,unless an awful lot of investors didn't vote ,which meant (for some strange rule,which I question),that all non voted shares automatically are counted as "FOR", Who makes these rules ?
If your anger could be mobilized to a shareholders meeting,we might get some attention.
Fact is, If our 1/3rd shares had never been taken from us ,I'd be fine with the share price right now.
Management is only off by a dollar,or about 60 million in market cap.
Like I've said before downside ,I can trust management to make things better for me ,IF they throw away the options handbook and are serious about building a company with shareholder support.
Serious consideration should be given to having a transparent options and salaries discussion with shareholders,at very least, explanations. Executive pay in Public Corporations that are essentially not profitable, or profitability is not being shared with shareholders, has gotten way out of hand.What use to be a bonus for doing a good job has morphed into expected compensation, despite what kind of job is done.
If I were a CEO in a similar company, I would try and break the mold. You can't buy better advertising . Blasutti seems assured , "telling the story ",will help the growth here. Blasutti is a smart guy, leading what seems to be competent management, with credentials so...
your question... can you trust management..to make things better FOR YOU.
If shareholders realize their own financial success here can come, by engaging management (Blasutti) ,in developing a long term understanding,then the trust will likely be better, FOR ME.
The World is changing and breaking with tradition in a situation like the one we are in, understanding the value of the product, in appreciation of the worlds condition and arriving at compromises, could take the assets of this company to new heights ,FOR the shareholders. Wouldn't that be a sight..?
I agree with your post downside,but I 'm still thinking that US Silver and Gold is better off now than they were before the merger .(IN ASSETS ONLY)I might even consider Management, assets,because WE shareholders, sure paid for them. The company is MORE valuable,most shareholders hold LESS value.A good time to buy ,for new people.Most longs are probably too bitter.
The merger wasted 1.5 million in cash reserves that could of being used to continue maintaining the mine .We might have another figure next Q3.I mean, they must have had a victory party in August ,along with a lot of non ordinary costs ,like changing the name (LAWYERS must love this)
I'm maintaining my investment here because,I see a lot of value ,still present comparable to large resources with Nowhere to go .Have you shopped around lately ? Lots of deposits 5 years out ,at least.
I really can't fault Blasutti and his people for the monumental silver extraction ,that came in the form of books ,not shovels.
I didn't realize an accountant was not part of management ? Making excuses for what ? I was showing evidence that the financial loss , US Silver has had in the last 6 months , was largely due our management screwing with things, they shouldn't of.
How do you get ,I'm making excuses for them ?
The loss was largely due Administration expenses in Q2. What was happening in Q2,a merger maybe ? They list it as Admin.and general expenses.Generally that means ,expenses due a particular event outside of normal operations. MERGER ! LOL ,Get it.
Your a shareholder of HL. All I've suggested is ,even with this BAD merger, USA is in better shape for an investment than HL.I've listed some pretty compelling reasons. I checked the guidance in HL's production and it is worse than I reported earlier
On Projections,Greens Creek will produce about 6.5 million oz of silver and about 50,000 oz of gold,this year. That's all for HL in 2012 2013 will add 3 million gold projected. Approx. 290 M share out.
USSIF will produce 2.7 million oz's of silver and 25,000 oz's of gold in 2012. 3013 gold is projected the same and silver is projected to 3.7 million. Approx. 60 M shares out.
HL's costs per oz being much lower is found from 2 sources
1. Capital improvements into the hundreds of millions of dollars are coming from the reserve fund,which ,if maintaining their mine would not have been necessary.
2. 50,000 oz of gold comes out of the tonnage at Greens Creek,which remarkably lowers costs. Where's all the waste at HL. ?
I'll leave your expertise to figure that out. Try the M word. No different from my side.
A merger of these 2 companies would have been useful to USSIF shareholders and ESSENTIAL to Hecla shareholders.So,now you look at our share price and all the Hecla boys are now saying ."Boy,I'm glad we didn't pay too much for those assets"
You make no sense at all. It's easy to establish more value for the dollar at USSIF,especially now that USSIF shareholders have strengthened the assets of our company from OUR wallets.
My Management is on thin ice ,with me . How you feel about your Management, is entirely your own affair,but I think you should take my advice and hold them accountable through voice and reason,which is what I intend to do with mine.
They both might become better Management,for the shareholders ,if not out of talent ,out of fear.
US Silver posted a loss of 2.3 million in 6 months ,which includes about 1.5 million in EXTRA Administration expenses (due the merger) ,so the loss ,had no merger existed, would of been about 800,000.(over 6 months)
If they were not screwing around with this nonsense ,I'm sure we could have posted a profit but remember that US Silver has been using production income to rehab the mines,buy better equipment and in short be a safer mine than Lucky Friday ,which is now obvious.
Have you checked the stellar performance of HL lately.?
Accountants can invent losses at will and it seems this one was pretty obvious where 1.5 million went.This makes a nice setting for a new management to improve dramatically,possibly declare themselves in need of reward (options).,which is WHY ,I know US Silver and Gold is a good buy right now.
As far as you believing HL so much better,just remember they have 5 times the share structure yet only produce 3 times the silver.(currently)
US Silver improving to 3-4 million oz's next year is very likely .HL will be back up to 10 with Lucky back online. The gap closes. Greens Creek is a great mine but it's life with current assets is only about 15 years.(which is why HL is spending so much on Lucky and would have been prudent to spend on Galena. We learned that HL believes in the resource that is hidden beneath our 14,000 acres,so much so ,they were willing to pay over 100 million for Galena ,which they claim is not a good mine
RVM differs saying Galena is an excellent project,so what I'm gathering is ,that the value at US Silver is better than Hecla considering price and share structure and I think I'll be proven correct,if my new management does their job .
I agree that the options issue factors into the DD checklist ,but... Can you imagine a new investor to this company or to silver miners in general ,trying to shuffle through all this deceptive BS.What if a guy wants to compare 3 or 4 relative companies and has a job,and timing is an issue. This is NOT shareholder friendly at all.
Warrants never bother me ,because the investor is not necessarily an insider ,just a guy willing to put up a lot of cash and should have something well above his common shares for his risk.
Company Options are an entirely different ,objectionable way of DILUTION ,which is underhanded.It's veiled in performance enhancing financial instruments but has no such use.It's usually a sequel to a paycheck and that's where the problems start.
All these people in the World ,unemployed and mining professionals of non dividend stocks somehow believe they are worth more than salary and expense accounts and possibly some " out of the money" options,is clearly wrong.
Pridham sold this deal to us on a share price of 3 dollars.If options come out in the next year to anyone ,they should need 5 years to be vested and have a exercise price of 100% above that 3 dollars.
Really simple and I would have no objection.
I use to be part of a blockhead conservative investment club who's belief was investments including dividends should be 100% total profit every 5 years,which is correctly about 15% per year plus reinvestment of dividends and compounded.
The old boys were right and that is how options should be,to fairness.
Considering you sold at 1.80 ,the old USSIF,an implied loss ,I can't blame you for helping the price down a bit,but in all candor,I think Hecla's best chance to help themselves to a valuable asset was poorly managed and I think HL investors will get after them for that within a year. Not saying we got a better deal,we didn't on paper anyway.Too much of Corporate insider nonsense going on .It's time investors in the entire industry stop looking at each other as competition.Doesn't matter what company,it's becoming insiders vs. outsiders (common shareholders)
Money has been spent on the mine that added to costs. an old trick for mining companies is to wrap up mine costs in a capital expenditure which has been done here but also quite a lot of cash used from production going right back into the mine.Parker was criticized for establishing too many reserves . BS ,if you ask me. That's what a prudent manager should do. I give them a pass on cash costs (due the mine) because,it is a safe up to date facility and they are very possibly ahead of competition ,including HL in that regard.
I don't have the figures in front of me but i believe that we only LOST money this past quarter because of about 1.4 million into our old friend,"ADMINISTRATION",due from the merger.If we spent on administration costs in Q2 what was spent in Q1, Don't we make a PROFIT ? I think we do.
Seriously downside ,that's a bit much for someone who's not paid.
We have to go back to pre split for US Silver ,calculate the 1 for 5 differences ,then follow up by disseminating between those and anything new since the split. Then we have to do the exactly same thing over at RX ,which has a lot of encumbrances of it's own. Blasutti and his boys are relatively new ,over there.
Then we have to account for anything that could of slipped in since June 30th (if that's somehow allowed)Then we have to consider the consolidation of shares of 1st USSIF ,AGAIN,then RX ,then understand the meaning of all that ,relative to the approx. 70-30% split of the NEWCO.
Somehow it all comes to 8.5 million ITM options .That's not our job as shareholders.We don't have a job.This is exactly the kind of nonsense that has to be corrected,but I guess I say UNCLE.
Options should be a very simple document stated on the web page (with a disclaimer) How many ,who owns them,when are they vested and at what price.
If a company is to tell a shareholder to look at the SEC or SEDAR is BS ,in this case it's too complicated. Thanks anyway.
Why would you suggest that possible ? I'm not thrilled with Drumlummon ,but Hecla is no prize either.
Given the fact that the CFO is leaving but still being paid for the transition,it's likely this is another misstep in corporate management still present from US Silver. The outgoing people at US Silver are still option holders,thus have something to protect.
8.5 million options in the money presently.With the share price so low ,it's a real wonder why or when these are from. No detail as to options ,other than trying to figure it out on SEDAR ,I guess. Not an easy task with no dates,no understanding of who they belong to.If I'm wrong on this ,I'd appreciate some help.
This is the most important aspect of the success or failure of our investments here ,imo,that we can actually do something about.If we understand the why,when and who of the 8.5 million in the money options ,we,as shareholders might be able to influence the whole system of options through shareholder rights.Who knows ?
Check the volumes before all this happened. The U.S. market might consider investment in spec stocks like USSIF less than the TSX counterpart ,but there are so many more people and institutions here that the influence dwarfs that of Toronto. Why do you think it was so important to get an AMEX listing.The Amex is the 3rd tier of exchanges in the U.S. but....
I wish it was not so,I'd sooner rely on a listing from Toronto and Frankfurt,for mining stocks than any of the U.S. exchanges but..
Toronto is being unduly influenced by the absence of any trading in the U.S. ,so it's not a fair realization of share price,yet..
I hope your wrong oilizit. If that happens ,then our representation has been bad.I guess we have to let it play out for a couple weeks before suggesting resignations,if the implied premium never surfaces or stays well below either excepting HL or staying on our own.. I'm willing to give them considerations for a while,as markets are pretty fickle ,right now and it might just be a misunderstanding via brokers.
According to my Scottrade broker,the shares are not being traded (for me) ,until the DTC Depository Trust Corp. releases them under the updated number of shares with the same symbol. If I were trading this stock,this would be unacceptable. I'm long US Silver& Gold