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My understanding was he was a consultant up until 2011 but I do see where he was CEO ,a long time ago. Whatever the case ,details of how he "ripped off" the retail investors of CDE could be helpful if presenting an argument to our own management.
Not making any conclusions with our people ,I want the dialogue to begin. Too many people have too much invested here, to just cut and run. I firmly believe the management here is capable of exploiting the Galena,but I'm not sure if the mine success will be attached to the original investment, despite what happens with silver. My goal is to have a public dialogue ! ,that alone is the best advertising a company can have. Whether it ends positive or negative is entirely up to our CEO.
I've given ALEXCO ,as an example of distorted values in comparison to USGIF. I can go all down a long line, even with majors . The reason is clear to me that IF our management has designs on "our shares" ,it's because "our shares", are valuable. What they are doing ,imo ,is pretty much within the industry standards ,which is not to say ,it's OK.
It is poor management to dilute a company "by any means" or "for any reason ",if the share price is already grossly undervalued. It makes no common sense.
Options are designed to excel the process of share prices that are undervalued to share prices that are fairly valued. Abusing the options standard is happening all over the resource industry. The only way to stop it ,is to confront management and offer better solutions. That's my intent and the process begins by Mr. Blasutti reading this post or others similar and acknowledging that there is a problem here at US Silver&Gold and it's more than the spot prices of PM's.
Also ,Silver Wheaton is involved since a 50 million dollar loan from them, is what started the mine .
Silver Wheaton owns a stream on the Alexco flagship mine of 25% of all silver produced for 3.90.
How investors fail to see the unhedged value of Galena is beyond my understanding. We have no hedge,no stream ,no permit problems and no royalties. We have an active mine with expansion completely within the reach of our infrastructure and a very real possibility of 200 million oz's to be extracted over the life of mine.
I know of Dennis Wheeler ,a consultant for CDE until 2011. Please explain the relevance to Galena /US Silver
Alexco Resources vs.US Silver
Share structures are near the same ,with USGIF having 5 million more options/warrants . Big Surprise !
Both have about 60 million shares outstanding
Alexco has impressive grades at their flagship Bellekeno mine, but the fact is, life of mine resources are at under 9 million oz's silver ,65 million lbs. lead and 35 million lbs. zinc. There other two developments Onek and Lucky Queen total resources only amount to about 13 million oz's silver. They also have the Elsa tailings which could give them another 9 million oz's silver and 9 thousand oz's gold
Just doesn't seem to be a comparison here . I mean ,even our defective Drumlummon mine can beat them on gold and it is at least, an operating mine . Most of the resource at Alexco is underdeveloped. Also ,Silver Wheaton is involved since a 50 million dollar loan from them, is what started the mine .
To compare the potential resource at Bellekeno to Galena is like comparing the size difference of David and Goliath .They have roughly 2 plus million oz's coming out for the next 3 years but not much more to look forward to , where as US Silver has approx. 10 years of closer to 3 million oz's coming out with potentially 150-200 million more down the line.
Interesting that Sprott owns just under the reporting insider %, which means they can buy/sell under the radar. Alexco has that elusive AMEX listing and is selling for better than 2X our price. about 2.60 to our 1.17.
To me ,there is only one reason why retail investors have been scared away from obviously the more valuable stock. Just not happy with the deal between management and common shareholders.We need to fix disconnect.
I know it is tempting to buy back shares at these low prices but the last time resulted in a transfer of ownership. We had a little under 70 million out FD before the merger and today the same with less common but more options etc... Correct me if I'm wrong ,rough figures
Using the 19 million for buy back means we need cash for development .Blasutti wants Private Financing ,which will likely mean some dilution . A big circle. My guess is the Private Financing will be Convertibles where we borrow cash at say 3-4% interest and somewhere down the line either the company or the lender will have an option to convert the loan to shares. The devil is in the detail...
Hecla's looking bad as well. Another deal by their management that is looking worse all the time.
The reason Sprott and Sinclair can't figure out where all the gold is coming from,is because they're looking at the wrong Central Banks as the lenders ,or at least that's what they want us to believe.
They say there is a shortfall of gold from what is in existence ,what is being produced and what is being bought by IE: China. In other words if the Western Central Banks have no gold to lend, Where is the gold coming from that is being thrown on the London bullion market ? thus WHY gold is going down.
NyBob ,I suggest you put no trust in these talking heads. G&S will someday be partial currency collateral,imo. US Silver should be a good investment. It should be a store of value in itself and yet with gold over 1500/oz and silver over 27/oz ,our investment is being pummelled. There is no reason why this should be happening,not if our leaders would be fair to the shareholders. Is it so much to ask that they , Will they lead by example ?
Just because our CEO buys a few thousand shares with a deflated price after taking hundreds of thousands of options does not show any confidence. If these salaries are what I'm beginning to believe they are ,then buying 20 or 30,000 dollars worth of stock is trivial.
It's all about the greed in the industry,not particularly towards Blasutti. If these insiders ,including Eric Sprott really believe in the eventual dominance of g&S producers due the eventual dominance of what they term ,"real money",then Why aren't they buying this company up ? My answer is,they're really not sure when their scenario will occur and just like the crooks running the banks,they've learned to be on both sides of every trade. They might not be shorting our company ,but they certainly are not trying to stabilize the price.
They're not thinking of the shareholders of our company,but the shareholders of their funds. This type of bargaining with peoples savings is full of misrepresentation. They (Sprott) stood firmly behind the RX merger ,which has literally destroyed this companies near term value. Why would they care ?
Common retail shareholders have to work at being part of a miner who will operate effectively in bad times (if you can call 27-28 /oz bad ) while setting it's sights on the good times ,paying a dividend in silver or possibly just storing value in common, for holders of the company. We retail shareholders are being diluted out of our savings while the long term goal seems primed to make insiders wealthy at our expense. If we HOLD ,we might do alright but given the circumstances of the eventuality of silver dominance ,we are being skinned,imo. People will leave miners and head for funds ,where again Sprott will benefit. Can they honestly say that their merger opinion was correct ?,that this new management has been effective for it's common retail shareholders ? Total misrepresentation ,imo.
I want our representatives to be decent people of business . Dialogue should be their prologue to success for all of us. When ?
Looks like it's American and he cashed in on another 16K in options profit. I think my belief in issuing options at 100% above current market price would be reasonable. 340,000 is what Long made in 2011.I think that's plenty for a company that pays no dividend. I would assume most of the key personnel earn like salaries. Thanks a lot for this,it helps me realize that we are dealing with a management that needs to do some adjustments or I personally will be voting them out.
Galena is one of the best silver mines in North America. We are on the verge of something great here but at this point I think we need to consider a management change ,unless they begin some dialogue to fix what is wrong. The operation seems fine,it's the finances that are bad,imo
I posted ,that I wasn't comfortable to average down because management NEVER answers the criticism from people like me. If they did ,whether they changed my view of them or not,ATLEAST it would show that they are considering shareholder views. That might urge me to buy.
Howard Hughes bought Las Vegas hotels back in the late 60's. Laying in his bed ,he was trying to figure out the best way to make the opening night at the Landmark Casino ," memorable ". All he had to do ,was show up.
All our management has to do is enter into dialogue with the shareholders. Answer the critics. Why so many options when the company has been bleeding since their arrival ? Why couldn't they have shown confidence in this company by issuing options at 100% over share price the day of issuance ? Do they seriously believe that in 5 years ,they're not going to get an excellent return ?
These guys didn't build this company. They're not the people who had a vision of reopening the old Galena. Lets just remember ,this ain't no jr. exploration outfit where options are the only way some can get salaries. This is one of the top silver mines in North America and it is running profitably.
Anybody know the salaries ?
Your 5 positive points are all accurate ,imo.,but...
It is important to note that this was listed as a "non-cash" expense. Much if not all of it was a write down due to our crack management team discovering that Drumlummon wasn't worth what they paid for it.
In a sense ,they really didn't pay for it ,we did. OR common shareholders did (which they were part of), but their losses were compensated with in the money options. Down the line ,you'll get your 40/oz silver,they know that and that's when they become well off, we get back to ground zero and maybe a decent profit.
Just a while back,I was still above water,no longer. I easily could have averaged down but I find it difficult to invest anymore here until these guys answer the critics. Nothing would make me happier than for them to explain away the criticism of their apparent greed and unfriendliness towards common shareholders. I firmly believe with a valid argument that the Galena Complex is currently the most undervalued producing silver mine in the U.S/Canada,possibly Mexico. So many Mexican mines ,I can't be sure.
These guys know they are literally sitting on the goose that can lay the silver egg,so long as they feed her. The problem is they want to feed her imported food (private equity) instead of home cooking . (profits).They are themselves eating all the home cooking.
I'd really like a glance at salaries if anybody knows how to see them .
First off,I'm fine with you posting here but ... Why are you ? Are you looking for an entry point ? If so, then you are realizing that despite the merger/management problems (which I agree with you to a point) ,Galena is one of the best silver assets in the country. Actually it is the best silver mining asset for the money,in both Canada and the U.S.. at this point in time . Anybody want to disprove that statement ?
What compensation are you referring to ? Do you have any numbers ?
Issuing options dictates share price. If a sector is down ,a good management team will try and show the market the confidence in their company by issuing options (which they are entitled to) ,at well above the current share price.
That price becomes the new support level for the stock. They know it,and yet give themselves (at my count) 3 rounds of options in less than a year, near or at " in the money" from a badly depressed share price . That's why the share price is so low. It would be low enough,due general silver mining part of basic materials sector,but the real bottom crawling share price is completely from a market that views a self serving management,in my opinion.
Your probably right,they probably will not consider a re-issue of new options that could truly incentivize the share price . The damage has already been done and if they are not called on this options format,it will continue,imo.
This is a solid management team that I feel strongly about ,as far as their mining competence. We as shareholders need a dialogue with them about this options problem ,and change the incentive options plan to better suit the current market for spec stocks.
MCF Natural Gas breaks 4.00 10am
Another reason I'm interested in the Q1 filing is to figure out just how many options Blasutti and his team have issued themselves since they began US Silver&Gold
600,000 for 7 people in January of 2013,so they of course would not be on the 2012 annual filing
In my opinion ,this is the reason why we are so far below where we should be.
Look at RVM . The Troy only produces about half of what the Galena produces in silver and it is lower grade.On top of that Troy is closed ,until further notice.They will likely have a half a year of lost production.
Rock Creek,their huge undeveloped resource will cost about 700 million to open and that's IF it actually happens. A lot of opposition.
Our Galena ,running smoothly with it's huge resource on the same property with a minimal amount of CAPEX comparably to Rock Creek yet....
We sit at 1.40 ,they sit at 2.20 ,interesting that they have just 1.5 million employee options
Management wants those options exercised so if the share price looks like it will get to 40 cents,I think institutions and insiders already present might step in this time and push us to a respectable 60 cents. At that time ,I expect some healthy M&A talk ,providing we get some cooperation on the long term future of natural gas products.
Even though M&A would get the retail base buying,I'd like to see this company drill a well at North Rangely and that would likely mean waiting several months ,unless a JV pays for it. A solid ,long life deep oil well could completely transform the image of Dejour,which right now is a natural gas developer with a small oil reserve,in another country. When investors have a hard time figuring out what is more valuable ,our NG assets or our Oil assets,then we've been transformed and no longer would sell for under a dollar ,imo.
News is coming on a lot of fronts ,
More on Kokopelli,
What about the Roan Creek deal ?
What about the Woodrush JV ?
Natural gas starting to look like it's new home will be in the 4's mcf
North Rangely partner ?
South Rangely expansion ?
Of course , the 2012 results are important but I thought production was picking up and expected Q1 to be good. Operations with this company do seem good and improving .I'll give them credit for beginning the best story of all,which is the direction of organic growth.The LZ area ,Caladay has more than just promise,it completely changes the companies image of a tired old mine trying to keep up transformed likely into a modern, more mechanical operation with huge upside.
The market seems to go for open pit mines but with fuel costs always rising and the cold weather of Idaho,an underground operation with infrastructure at times could be deemed more valuable especially when grade is decent and production is improving. We need good quarters and a little help from the spot price .
BN;Your a living example of what I just explained.
. All we have to do is send a message to management to stop diluting this company for their own personal gain. We could be a 5-8 dollar stock before the year is out, even @35-40 /oz silver.
You would invest here because the value of the assets compared to the shares outstanding is appealing to say the least.
",but what has management done to attract and retain shareholders? Nothing "
I wish I could agree with just nothing. They have done worse than nothing ,they have diluted entirely for their own gain. I know some will argue that options are not dilution until they're used but the fact is with a depressed share price these guys gave themselves in the money options or close to it and the result has been their options are no longer remotely close to being ,in the money.
This is why our share price is well below 2 /share ,not because silver is at 28+,that's just ridiculous. If cash costs are as predicted and expenses were kept in check ,this company should be raking in 10/oz profit minus those salaries. That's the real story ,Are they achieving that ????
What are the salaries ? anybody know.... How do they compare industry wide ?
I'm sure this company is profitable but I believe the market will not give us our just value because the profit is lower than it should be. We won't know until Q1 is made public in May.
Has Sprott sold some common shares to keep the price lower.? Do they own more warrants ? Will they be financiers for something we don't need ?
I think the market in general wants companies with clean balance sheets,solid production in safe jurisdictions. Homegrown or organic growth. Blasutti has said he wants these things but then throws in the private financing for growth story,exactly what the market is not rewarding.
I'm lost,can't make any sense of this...
Good post Silvergoldenapple, I would heavily favor those on the list that are silver miners first. Gold's not going anywhere this year imo,not for the long term. Maybe as high as 1800 but likely will go under 1400. 1800,imo cannot help gold miners. Gold is a good asset to have for off setting cash costs.I hope these guys can use this Drumlummon mine to our advantage.
Is Drumlummon making a net gain ? A really important question considering your list. Silver could do very well this year. Technology stocks of all types are needing silver and we are increasing revenues. All we have to do is send a message to management to stop diluting this company for their own personal gain. We could be a 5-8 dollar stock before the year is out, even @35-40 /oz silver.
Why can't they recognize the mistakes they've made and correct them ? All it would take is a PR and following up with action,imo
How much lower will they let it drop? Sprott and Insiders only have the interest for themselves and no one else. They could care less about shareholders, but when does it come to a point where it would benefit them with an increase in PPS?? At $1.00????? WHO KNOWS ANYMORE!
BN: I think your on the right track. Anyone with a rudimentary knowledge of producing miners knows this valuation is ridiculous . We are at 28+/oz silver ,not 18.
I understand companies that need big bucs to develop assets ,or even small PP for some exploration cash ,but that's not the case here. Share prices for companies with good balance sheets are bad ,but there seems to be more to this.
I'd bet my shares this is insiders running the share price down. Management ,Directors and 10% owners would have to report, but with this low volume ,it doesn't take many shares.
How many shares did our advisers have before the share drop and after ? IE; Cormark (closely related to Sprott ) or a few others that have been paid over the years in shares could be behind some orchestrated selling to spur on a retail sell off.
I only mention Cormark because of the great advice they gave shareholders about the HL offer and the RX deal.
Bottom line is we don't know the bottom,so selling could be catastrophic to anyone that has suffered through the last year. HOLD! Don't bother trying to use charts .With this volume ,it's a suckers bet,imo.
I'll stick to my belief from yesterday ,that our price is being artificially lowered to accommodate another larger transaction. Whether that is a merger or just an insider entity working at acquiring a larger position is guessing. That's what's wrong with free markets LOL, there are so many ways to deceive the dying breed ,called the common shareholder.
There are literally dozens of gold mining companies that would be happy to merge with US Silver ,especially now . Calling an 18,000 oz's of gold /year a productive gold mine is like saying a 300,000 oz gold deposit is worth developing,it's not. Drumlummon has about a 3 year resource. I wouldn't even classify it as reserves. I expected them to get this thing going by now.
Anyway Bob ,I know you think I'm bashing USGIF,I'm really not. I simply want this company to turn around and I see no insider buying,unless they're gifts .I see no reserves at Drumlummon and apparently no permit for large mining. How can they open Belmont without getting a permit or ,Is that done ?
I'll put Galena assets up against Montanore,Rock Creek,Troy ,Lucky Friday and Shafter ,any time and win in an all out debate.
The company has the assets and Blasutti's people knew it when they merged and still know it. My argument is with wasting money on a Boy Scout gold mine and diluting our company with greedy insiders. It's got to stop or a lot of people here will revolt,then there really will be a problem. Right now ,if management ,directors and insiders take seriously and react to some comments by people similar to me ,then this can still be a top company to hold throughout a time of descending value's of many assets ,previously thought of as safe.
Bob, I'm agreeing . Blasutti and his people are doing a decent job with Galena but Drumlummon is going to be less in 2013,not a good sign. Also,I've heard nothing about the large miners permit. How much debt do we still have because of Drumlummon ? Show me on paper where Drumlummon is making more money than it's costing.
Wouldn't we of been better to merge with a real gold producer ,which right now are the only miners worse off than us ,if that's possible.
We are a valid exceptional silver producer.Why in the world would we shareholders have given up a third of our shares for a mine complex worth about 10- 20 million bucs.(if that) It's mind boggling and don't say it's easy to say in hindsight ,I did say this 6 months ago. If Drumlummon had something to offer this merger other than it's bosses,I'd truly like to know what it is.
That's really good to know that , "It can be done". Congratulations on that.Very impressive.
I don't know the situation which lead to the shareholder revolt over at that other company but we could begin here by at least having management address some issue's.
I called ,months ago and told of my views.I also said here on Ihub that I was willing to give the relatively new management a chance to show their stuff.
Although I have not been disappointed with the progress from Galena ,the Drumlummon has been a disaster.The options given at a depressed share price are almost unethical after the Chairman sold some shareholders on the idea of a 3/share price following his heralded good deal merging with RX.
The involvement with Sprott and the safety measure having Cormark watch out for our interests in the RX deal,still bothers me . Neither had any business playing the counsel for us. Everything would have been forgotten had Mr.Blasutti put the common shareholders ahead of insiders ,at least until the company got through a tough time with silver. Instead we got a slap in the face.
Options in the mining business are destroying the mining business because they have taken the incentive which is what they were designed for and turned it into an insiders only club for achievement and failure. It's a sham and I don't say that USGIF is more guilty than any others ,I simply say they gave up a chance to gain the greatest advertising the company could buy ,for free. "Issue incentive options @ 100% above current share prices"
Confidence in your team,your project and your products
It's just the price movement of the stock is very similar. There is no reason for the price to be diving. We are not in the category of a distressed company.
The Gold mine is a nightmare that very possibly is the reason for interest in our company being down, with retail investors.Lets face facts,Drumlummon is a liability,at this point. Maybe that will change but maybe it was orchestrated from day 1 by insiders to effectively devalue the assets of US Silver for some reason only known to the few. Who really knows ?
I completely disagree with the notion that speaking in a negative sentiment on an online forum like this for shareholders that are long is not wise. It is wise and we should have been doing this all along. Stop placating the people that got us into this mess and force them into taking responsibility.
I'm a long ,I'm completely satisfied with the potential value here but I've come to realize after several months that our share price would be no less ,had we been a little more negative and a lot more effective in using the retail base to influence the management, into fair business practice. Stop them from rewarding failure and make them take some responsibility for their selfish actions that have cost people here hundreds of thousands in their savings , all for being good shareholders and trusting them to be fair.
All I ask is that the Directors and the Management of this company produce some results that bring the share price to at very least where they suggested it would be post merger 3/share. From that point ,if it is believed that silver will be a dominant metal over the next 10 years , when they will issue options ,they will be at 100% above the share price ,showing the market confidence in their products.
If they do those simple things,they will build a shareholder base that would never allow this disintegration of share value to happen again.
The way to accomplish these things is simple.
1.Retract the options already issued and re-issue at 4/share (a bargain for them with a 5 year term)
2.Make use of this "act of confidence" by advertising the excellent position of the Galena Complex. Do some comparisons.Challenge investors to find better value.
3.Make known that once the LZ area of Galena is fully operational,the company plans to run as lean as possible and store as much silver as possible. Only sell what is necessary for the operation expenses. (another show of confidence ,this time in the product itself)
Rest assure we would be knocking on 4 dollars inside of a few months so long as silver spot price stays above 25/oz
Why do I feel like we are being positioned for another merger ? Share price continues to decline in an environment where cash flow positive companies that are not in need of financing ,to continue operations, are suppose to be safe. That's what we are .
Plenty of junior explorers and developers will be put on the auction block after the best resources are cherry picked from the majors. One defensive solution is to merge. Get bigger quick .I have no information ,suggesting our share price down trend is manipulated, in order to satisfy a merger,it just seems that way. Recent history can repeat itself. It would be entirely an inside deal, "AGAIN". USGIF is really in no position to be NEEDING another merger with a smaller entity but... What the heck is happening ?
The market recognizes a company that exceeds the value that is being portrayed yet institutions do not invest.
Why ? , In my opinion ,the only investment institutions want to make in Galena -Drumlummon is an insider position. "Private Financing"
The company is showing itself to be an insiders safe haven . No matter what happens with the price of silver,insiders can do at least ,OK.
The retail market is almost non existent because at every positive tangible NR,(like the enormity of the LZ prospect),insiders dilute the value with options before the intrinsic value has had a chance to develop. The LZ should of been the game changer for this stock. It matters nothing of what the price of silver is today ,but what it will be when the LZ comes into full production. Our entire merger savings (on the backs of the common shareholders ) through shares (about 8 million),have seemingly been issued as options. We had roughly 70 M shares FD before the RX merger and now have about the same ,yet our common shares are less.
No matter how good the Galena is , if it's potential earnings are diluted away from common shareholders and towards insiders ,it's not looking like a good investment.
After all ,it's not like we are getting a dividend,the investment here is purely speculative to the price of silver ,therefore the share price and the net production results are our investment.
In an inflationary environment or surge in the industrial demand ,we could become very profitable,IF the company has few obligations towards insiders. No debt and positive cash flow (or silver oz's) with a smaller share structure.
I thought that's what the plan was ? These are things to consider when voting but more importantly these are things to let management answer to,NOW.
My point was to make us all aware that developing our LZ with a lot of infrastructure in place is a lot more appealing than starting from scratch. Brownfield vs. Greenfield. When the resource is close in size ,Brownfield wins every time .In this case we have more silver but more importantly the Galena complex can develop it's silver resource cheaper and produce more per year.
Unfortunately ,we had to rely on Drumlummon for our gold and as per usual is disappointing. PZG has the AMEX .
Retired young points out the share structure.More than a double.
My point is Paramount is not a bad company. They have an excellent resource and over 14 years it will take a capital cost of 500-600 million to get at it ,where as Galena might take 1/3rd of that to develop it's entire resource over the course of more than 14 years. I think it's possible to have Galena producing greater than 5 million oz's over twenty years,then ,Who knows....The Silver valley ,Idaho will likely trend more and more towards safe haven as an investment location , compared to foreign projects.
Why would the market have PZG at 60 cents higher?
I think the prices of these 2 companies are not reflections of projects but a reflection of 2 managements. The drawback to our company is the stigma of a terrible deal for shareholders and seemingly nothing that has been done to repair investor sentiment by our management and directors.
http://www.marketwire.com/press-release/pea-completed-for-paramount-gold-and-silvers-san-miguel-project-in-mexico-tsx-pzg-1762289.htm
Do some comparisons. Notice the Capex ! If US Silver spends 10% of what PZG spends ,we would have 2 million oz's more silver per year. They got us beat on the gold but 37,000 oz's a year more gold is not worth 200 plus million.
All this means is infrastructure and safe jurisdiction are everything in these times of high costs ,particularly capex.
This stock is so undervalued relative to it's peers that it says to me , that the market is not happy with the management. I think it's the salary and bonus issue's. I can't find any other explanation. They should heed the market notice.
I think the Roan Creek deal is something that investors seem to be forgetting about. Always talk about Kokopelli and Woodrush,not to mention the Rangely's but at RC area ,we have some cash coming ,also a percentage of some wells at no cost,so good point hillzman.
Recent history has proven that US Silver was and is far more intrinsically valuable than troubled Revett ,yet we still sell below their share price. We both have operating mines but ours is open and expanding,theirs is temporarily closed.
We both have huge resources but theirs will cost several hundred of millions for exploitation, where ours will cost a small fraction of that . Their's is being considered for development (and possibly rejected ) while ours is shovel ready.
They target ,near term production (2 years),upwards of 2 million oz's while we target 5 million.
but with the good comes some bad, They have half the share structure and are on the Amex. I would suggest our management do something about eliminating RVM's advantages (get a listing on the AMEX )or atleast not add to their advantages (stop issuing options), until they financially accomplish a goal ,like being at least worth twice what we shareholders were offered for our stock.
That's what Sprott's all about .Equity for insiders that do nothing more than a typical capital loan. Who needs it ?
Good post stkjunky. Private capital raises red flags for me. The assets at Galena are extra ordinarily good. The management team seems competent in proving the value . If we need cash ,go to a commercial bank. They might wonder why a company with these assets doesn't have a better balance sheet. The answers likely are liability assets like Drumlummon (at this point) . Possibly management could take a haircut on salaries,bonus's etc..
Banks scared to invest in a solid silver miner at this point in time better get into another business because in my view , good mines are going to be real estate that can actually appreciate in value over the time of the loan. 1% above prime sounds right to me,no options ,no warrants.
I hope Mr. Blasutti reads and understands my sentiments ,which is the same sentiment as many longs.
The focus of anger at your silver company should be imo, gyrating away from us and towards Aurcana and Revett.
Aurcana Executives managed to give themselves and other insiders 4.2 million options at "near current market price" OF .79 CENTS pre-RS. Imagine the confidence that management could of instilled before a reverse split. Price the options @ 100% above current market prices. They are after all, FREE !
Revett's only source of income is gone for now. Troy is shut down. They should have taken my advice and merged with USSIF before our merger disaster,now they have their own of a different type. The rock slide was of course no fault of management but their failure to capitalize on a deal like USSIF (Galena),most certainly was. Troy imo ,will always be a troubled mine.
All these poor judgments,from 3 decent companies just make investors stray away from something they should be gravitating towards ,imo. Silver miners.
Aurcana ready's itself for a consolidation. Their rationale seems so close to the USSIF one,it's scary. Their RS will be 1 for 8,which puts them right around 60M share outstanding .Sound like anyone ?
Presently ,post consolidation would have them at 5.60 cents. I will put up our assets against theirs anytime. i hope they stay over 5/share ,because it would show the massive undervaluation of USGIF but ... I really think they'll fade. This RS will do to them what it did to USSIF,imo
What crazy valuations !
Silvergoldenapple ,
It was an excellent report.It shows something that I've believed from the beginning .The ASSETS at Galena are among the best in the country.
I want to make something very clear. I do not believe this management to be incompetent,on the contrary,I think they can and WILL get the job done. My disagreement with them has been clearly stated previously. I called them and told them that it would have been advantageous to issue options at 100% above the stock price (the day they issued)
Do you really believe that the share price would be where it is today ,had they taken my advice ? They showed NO CONFIDENCE in the resilience of the share price ,in a down trend market.A huge mistake. How better to show the market ,the great promise of this company than having it's M&D show their affirmation . This is nothing more than "industry normal". Incentive options issued at current market prices destroy share price. Obviously their own personal wealth is a lot more important to them , than the wealth of the company.
I hope you realize that fact and when voting time comes around and stand up for your own personal wealth.
I don't agree with shareholders rights plans because it relies on the companies directors to make deals instead of letting the free market decide. It can be beneficial to shareholders in extreme conditions but considering the history of M&A with the present M&D ,I personally think we would be in better hands of the 20% plus owner of the company .(whomever that might be.)
The Directors of our company could squelch a deal if they were not personally compensated to allow the "shareholders rights " ,to be excluded. WE have given them that power.
"Poison Pill" was devised in the 80's to protect a possibly naive shareholder base .I don't believe WE are that naive ,any longer.
Aurizon shareholders have the right to take cash or shares ? I don't like HL at all but since their price has gone up,What's bad about that ? 4.75 in cash for Aurizon is a good offer .Correction; a great offer
almost at 800/oz cash costs and about 1.5 M in reserves
In these times where miners are being decimated ,what a deal for Aurizon. HL continues imo to be the bonehead captain of miners
173M FD shares for a mine with those reserves ?????????
Makes me really wonder .The deal is telling us MINES are worth a lot more than undeveloped so .... Why are we sitting at 1.50 ?
What poison pill ?