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Thanks for replying Dee. There is such little conversation on this board I feel it is likely that the long term investors are ready to pack up and leave .Sad situation and I reiterate my dissatisfaction with Sprott. Include Cormark.
Like you, my perception of institutional's like Sprott has changed. If they were some pension fund or a long term growth fund that looks and invests after a diligent dissection of the company ,that's great,so long as they are not playing 2 sides of a merger or a trade.
Our realization that we were in my opinion being short changed, came when Sprott and Cormark which was hired supposedly to be looking at the fairness of the RX deal ,overwhelmingly voted FOR. Cormark proved to be linked to Sprott. Lots of history. I really have no idea why they were paid for council.
Sprott made it clear they were FOR the merger ,yet people that think identical to them (Cormark) are hired give council. Why is this sort of thing allowed ?
The deal has proven to be the disaster to individual shareholders because we lost 1/3rd of our value and gained something that apparently loses or needs money .Money that could of been used to develop our silver assets. The critical issue is ,We paid for it . Not USSIF ,but USSIF shareholders.The cash didn't come out of the treasury,the cash came out of my pocket and your pocket through a sleek deal. If this deal never happened I would be OK with the 1.50 share price which is entirely the sum of what the market believes Galena is worth. Drumlummon has nothing to do with value because it's looking like a liability. .
I still remain loyal to the concept of value from one of the countries best silver plays. Galena can achieve productivity at below 20/oz or less and as the silver price rises , we will do well. The Directors and Management simply want a bigger share of something that they feel is going to eventually happen. Silver going up. I strongly disagree with giving them anything beyond structured base salaries and incentive options @ 100% above mean market prices over 90 days prior.
Galena is a prize because it is a working mine that has huge new resources that can be developed that are equal to many competitors but has the infrastructure already built. This could in itself be a smooth transition ,debt free ,to a huge resource all built in the years where silver will likely rise.
I understand the currency crisis,the need to collateralize currency . That's an obvious place for precious metals. Even more obvious is an investment in a gold and/or silver miner that could literally extract money from the ground. but...
Eric Sprott ,Jim Sinclair ,Doug Casey all have something very much in common. They seem to get richer or more connected on inside deals while the retail investor holds on and loses , primarily because they keep up the hype. Golds going higher ! No kidding ,but if it crashed before it does ,they might just get a taste of their own medicine.
We have no idea how many companies they are on both sides of trades with. They all have networks of yes men in a complex called junior mining. Just remember somebodies got to lose. Furthermore ,it can happen easier with PM's,even physical coins or bullion . Don't you think the Central Banks buying gold know something about shorting .? Do you think they're just going to sit on their gold earning no interest. That's fantasy in todays world.
Seriously ,Why in world would Sprott have voted for this US Silver/Rx Gold merger ? The value created was /is entirely for insiders but we are suppose to be comforted by the fact that G&S are going to the moon...someday
I need no more advice from these pundits. Liars filled with self interest,no different than the Big Banks. No true capitalist system exists on Earth right now.
All I can do is use what I've learned . If I see an institution like Sprotts or Pine Tree (Inwentash) buying big >8% , into one of my investments,I'm gone.
Isn't Eric Sprott and his minions the ones that pushed for the merger that has destroyed the value here ?
I have no understanding why retail investors seem to think of this guy as all knowing. He is a shark looking out for his own best interests .Retail investors independent of his actions might better be described as food,imo
SEDI has nothing new
I'm still interested in the amendments to the options .What are the numbers?
I asked management to consider 100% above the share price ,the day of issuance . Could it be ,they have actually taken the advice of a shareholder ?
The pundits tell us that gold is being bought by Central banks. That would appear to be a prelude to an end of fiat currency but....
When ? Though Central banks might be in preparation ,I firmly believe they are in no rush to collateralize currency so ...
What do they do with all that gold ? How to earn interest with gold bullion while in preparation of using that same gold to back currency,down the line ?
I think they might lend it out, to large commercial brokers, whose purpose is to collect hard assets by means of being on both sides of every trade. They make money,Central banks make money and the gold stays in their ownership.
Gotta be a loser somewhere.
That's just one theory and in my opinion ,it's valid
Anybody trying to swing trade this will lose. I'll bet that's why your bitter. The long trade is always best when financing,permitting and drilling success are all rolled into one .That's the case here. Simply a spec stock that is close realizing it's potential.The question is how much of it's potential will be realized , not if .
I'm over on the yahoo board once in a while and I read a lot of negative posts that seem to be from one or two people. Multiple alias's. There is a lot more opinion ,that's for sure. One of the positive opinions that I agree with is the " game changer "interest in the North Rangely property. I think it's fairly obvious that DEJ has some marquee natural gas properties ,but natural gas has yet to make a clearly defined move over 4/mcf and settle over that price.
Deep shale oil is the talk in the energy sector and the North Rangely and even S.Rangely properties could have huge share price implications this year if only 1 discovery well is successful on each property..
It seems that the huge retail interest in DEJ is waning again due to a lack of knowledge by investors concerning too many properties.
Is Woodrush to be sold ? (end of February)
Is Woodrush to be JV ?,mainly on the deep shale play
What's happening with the Kokopelli deal ?
What's happening with the Roan Creek deal ?
Too many unanswered questions have lead a retail environment to be less confident , mainly because there is too much perceived connection between DEJ and natural gas and much less between DEJ and oil AND the oil properties are seemingly 2nd on the agenda.
I think it's the in the money options that have de-railed a rally that was beginning.(due some very exciting prospects). I have no excuse on the companies behalf to give ,other than it is industry standard. There is so much good going on with this company ,I suppose it was reasoned that it did not matter. Insiders being issued options in my opinion does not have to be a negative,on the contrary, it can be very positive.
I've written to another company I'm invested in ,who were guilty of the same standard,that my recourse would have been; incentive options should be given to Management and Directors at 100% above the average market price for 90 days prior to the day of issuance. Vested immediately and with a 2-5 year term.
Concerning Confidence; No better advertising a company can do in my opinion.
Bob ,I'm not saying buybacks are bad .They are a good way to encourage buying, but if it is coupled with free options ,the good part of it is wasted. Unless you complain and shareholders make management and directors know we mean business nothing will change,except the obvious value created by silver spot price rising. To me,that's not good enough. That's what the guys running the show want you to do .Fall in line and wait.
If I had as many shares in this company as many here claim they do,I'd be a lot more pro-active.Don't worry about saying things about the company that are not in a positive light. The Deposit (GALENA) is the value here. That will not change. USGIF has the most undervalued mine/deposit in the U.S.. I believe management is capable of exploiting that value .They are not dimwitted or incompetent ,simply not working,imo for the common shareholders which is by design of the stock market suppose to be their objective. When they say it ,they should actually mean it.
Awarding themselves options at market value is telling the market , the value they are confident with. That's not confidence at all.
Can't all the people here understand that ?
I know some get it and some believe by agreeing with the complaint ,it is like shooting oneself in your own foot. That prevailing attitude has got to change. I repeat,...... Nobody ,least of all me is trying to say that value here cannot be recognized, despite the negativity management and directors have created. It's simply not as much value due their indulgences and indifference to shareholders investment.
Please,
suggest to management to buy back shares -
The Buy Back Program should again be operational and hopefully
we will see this bolster our share price.
NyBob, I can't support a buyback of shares. The last time, all it did was lower the outstanding shares ,which have been completely absorbed by management options. Our equity has not been lowered by a buyback .
The greatest plan to raise share price comes from two separate strategies
1. Continue to explore the massive resource around the Caladay and the LZ. With the Galena being a top silver producing mine with reserves and one of the largest resources of silver in the country within it's infrastructure, a continuance of exploration can only serve to raise the overall value thus the share price.
2. Management should commit to only issuing options to itself and the BOD @ 100% beyond an average share price over 3 months. That's called "incentive" and that's what makes investors "believe" and thus BUY stock !
Imagine if the last round of options had of been @ 4.00 . I think long term investors would feel comfortable buying up to that point. A great opportunity has been scuttled, AGAIN.
"from costs that were a lot closer to $12 not all that long ago."
The problem with comparisons are that costs in general have begun to be reported differently.
Goldcorp,Yamana and Newmont have begun better information for shareholders and the government .
"ALL IN " costs should be the new standard ,hopefully it will.
1. Product cash costs (by-product cash costs): These are obviously what it costs to get an oz,lb or ton of whatever out of the ground and milled into some kind of salable product
2 Sustaining Capitol Costs: Most miners do not report this. How much will it costs to replace those reserves ?, (drilling in another category ) but more importantly , machinery replacement costs and reclamation costs are two big ones. This category is really important . Do they own the machinery ? If they don't then the company leasing it to them could raise rates .If this is not ever reported it is not accurate and this can lead into millions,imo.
3.Corporate & General Administration Costs: Who really knows what the heck these guys,in the industry are reporting . What about (in USGIF case ,those damn options .) I think that sometimes in the past some of this category is reported ,sometimes non of it.
4. EXPLORATION: I know in USGIF's case ,this has always been factored in to cash costs but, Are all companies required ? This is where former management of US Silver excelled. Parker ,drilled a lot .
This was the major parting between our people in the old management team,imo. Many were dead against it . I talked to insiders more than once about this issue and finally ,completely disagreed with their analysis that Parker was spending too much of the revenue on drilling ,in hopes of increasing reserves. The fact is today they are hauling out some higher grade ore (leaving the lower grade for when spot price rises) This of course makes sense but ,Isn't it good for investors that the company KNOWS where those lower grade reserves are ? This is imo a critical reason why this company really has value far exceeding many of it's competitors. KNOWN RESERVES ,not just resources. We are presently about 7 years ahead .Most smaller companies have a lot less.
Anyway downsideup, I think you would agree that cash costs ,as the industry presently reports, are not a huge indication of more or less value. So much deception .
This production report looks great. The Galena Complex never ceases to make me feel good. More and more evidence shows this to be one of the most valuable silver deposits in the U.S. or Canada. Solid production and Brownfield development with a mix of high and low grade (copper or lead mix ) all on claims where no royalties are to be paid. Speculation in silver mining doesn't get any safer,imo.
I'm hoping this is not an outright sale but a JV,where our financial responsibility is minimal.In any case with all the deals being made or in the works on 5 core properties ,it seems DEJ is going to be pro active in getting us out of this hole (.20 cents). I like the activity and although I do not agree with options at market price ,I do see that overall our share structure will go down. This company has to stay under 200 million shares and must make all properties active participants in growth now ,not in a year. NG prices and oil prices are destined to go up ,imo and this is a very opportune time to showcase the portfolio,ALL OF IT !
An excellent piece of information Sevit,thanks.
The Galena Complex has a good mix. Excellent location,infrastructure and work force.
With substantial Reserves,which seem to be neglected in most other operations these days and the huge potential expansion the mine is a stand alone investment . Drumlummon is an after thought. Also with the advent of new mining techniques ,Galena's expansion will likely focus on cash costs ,possibly the only weakness,although I think anybody that believes in silver would agree that negative is over played.
Why is the price up ? Maybe somebody shook their head ?
US Silver seems to be on a tear. but... GLD,SLV,SIL GDX,GDXJ all down today . Make sure you check after hours before telling me I'm wrong.
Maybe somethings up,like a merger,a buy out or a new fund see's the value and IS buying or is going to be buying slowly,possibly already beginning.
Shareholders ,through internet sources such as IHUB should be actively telling the investment community we would be willing participants in a merger where our companies management and Directors will hopefully go into retirement. I share the "options anger" with others here.
Silver Standard just raised 200 million .A good portion is to pay their existing convertibles but about 50 million is open for investment . They want to acquire a producer. (likely through shares) .They have some of the best deposits in the world ,but only about 8 million oz's /year in production from Argentina ,another sore spot. They want N.A. production to keep them over 10 million oz's in total and with USGIF they could have the 10 million tomorrow.
They are well aware of the promise of the LZ. 50 million would just about do a solid first phase of development . 3 million oz's can be achieved ,even this year ,IF someone wanted to get at it.
I think SSRI has about 250 million besides this latest bit of extra cash .Why did they need an xtra 50 ? The 250 million is for their Mexican property which needs about another 500 million to develop so this offering had nothing to do with that.
I think we have a good chance of being in the running to be acquired by SSRI ,soon. I'm on board.
This is a globally coordinated effort to maintain the status quo,its not about ted butler or bix weir or eric king.....Dont puff yourself up with your simplifying...you wat to talk global macro markets...all day bud!!
Yes ,it probably is a global effort to some degree to maintain the status quo but... Where is the global initiative to keep the USD as reserve currency based ?
The answer is ;In the U.S. and that means the U.S. Banking system (whether it be Commercial Banks or the Central Bank),they are being influenced or even controlled to a certain degree, by lobby groups in Washington. You seem to want to simplify everything by blaming politicians ,join the tea party ,deregulate .All wrong . All playing right into the hands of lobbyists in the U.S. that are controlled by JPM,GS ,C and the like...
Here's my direct response to the problem without involving endless conspiracy theories...
Citizens will direct their Representatives to end Corporate donations in Political campaigns. We might actually get some politicians doing the will of the majority of people ,not controlling lobby groups.This will eventually lead a more informed public to realize that government should regulate financial markets to benefit a fair game ,which is good for the common man and is the essence of the free market.
The fact that the silver markets are manipulated is because of the lack of regulation that would have prevented what has been happening for years. US Silver should be at 5 dollars plus a share because the demand for silver IS going higher and production (depending on who you read ) is not keeping up.
These pundits or experts that fill the minds of people with endless conspiracy are actually playing the people like a harp,just the way the lobbyists do. The more indirect all the conspiracy theories lead us ,the further away from solving the problem we become. Blaming Clinton,Congress or Bush or Obama is naive and over simplifying. They cannot fix what has been going on for years but I would agree ,in a small way they can make the situation worse.
Yes ,talk about global macro economics and how they effect the share price of USGIF. I've given you the outline.
Your over simplifying is directed at your response on how to handle the multi faceted Banking -Currency problem in our country or for that matter this World.
You can't just blame corrupt politicians or delve into endless international conspiracy. Glass Steagall (which if you study me ) has been a topic of mine for years. Clinton overturned it just a couple months before leaving office. "Every corrupt or poorly orchestrated political move has a lobby behind it " and JPM ,Citi,Goldman etc have the most powerful lobby in the World ,bar none. They are tools, but instead of ranting about world conspiracies ,I choose to look at a problem at it's obvious core ,where something might be done to correct it.
The Glass- Steagall Act (Carter Glass and Henry Steagall) should be completely reinstated. That's a beginning. Commercial Banks taking your deposits and Federal Reserve backing should not be allowed to invest in markets through there legal affiliates. That is simple but making more of it than that just makes the whole talk get so confusing that the masses will never fully comprehend ,therefore nothing will change.
I don't understand how someone could read what I post and conclude that I do not believe that PM markets are manipulated . I think I have given many posts that prove they are.
Is the confusion that cash2 does not understand the term or how I am using it. ? Here's what manipulate means in the context of this debate; to move,arrange operate or control ,to influence or manage shrewdly or deviously. I think the short position that JPM holds can be applied to these definitions.
I agree with RY99 that there are experts,pundits (charlatans) hyping these markets and making money off the gullible. Just because something immoral and unethical is happening in PM markets does not mean everything will crash tomorrow or next week ,month or even next year. Cash2 is over simplifying Probably because he is sold on the hype and figures the quicker everybody else gets in line ,everything that he holds true will happen, SOONER.
PM markets, among many other markets are manipulated. I know that. Is it illegal ? No, Should it be illegal ? Yes,in most cases.
You cannot (should not ) have Commercial Banks using their investment arms in a position to manipulate markets because through the Commercial end of their conglomerate,they have UNLIMITED FUNDING from the Federal Reserve. That's a reality.
Dejour surely demands patience. I have the same sort of plan as you other than selling. I plan to hold until bought and 2013 is the year IF,natural gas and NGL's rebound and the markets believe it's going to stay up and go higher in years to come. If that happens ,DEJ is an easy sell
For 3 years prior, DEJ project portfolio was like a lot of undeveloped real estate. Permitted property is just worth a whole lot more.Drilled property and at least some production changes the whole story.
With the properties beginning to be developed and so long as the NG prices are stabilizing into profitable area's of returns ,the company is actually going to be a target for a buyout. I don't expect offers for what it's worth 2-3 dollars a share but I do expect offers over a dollar.
I've checked out similar companies (dissected to the best of my abilities ) and find DEJ better than all the rest .Share structure's a little high but so long as that stays under 200 million FD ,we are an easy target.
IE; 300 million dollars in a shares only deal , to a major is nothing 1.50 /share. I think our management is very good and we need help from forces outside their control.
Another good presentation. I never realized North Rangely (possibly DEJ's greatest higher risk asset), is 100% interest Maybe we can get someone else to pay for the exploration well for 50% in a few wells.That would certainly eliminate ANY risk.
Dejour's extra ordinarily good pipeline of projects gives their new direction of "project generator" a solid future for shareholders. Long and Strong
I'm not trying to be argumentative but.. How does that relate to what I was saying ?
OK downside, I said give these guys a chance and the options were a key in my criteria,whether they planned to be shareholder friendly or not . They failed
So,I've decided to encourage a buyout ,so long as it is an all share deal because I am adamant that Galena is one of the best silver projects in the U.S,or Canada
Any silver deposit the has as much as 200 million oz's attached to 22 M in reserves with an excellent infrastructure and low capex for advancing is a winner,imo
I agree that they are diluting our company (How much value is attached to a share ?) Still a lot ,imo. If silver has a decent year 40-50 range,USA should have no problem getting offers over 4 dollars a share . I realize that's still not great considering the haircut however if an all share deal comes to us with reasonable numbers (shareholders will support it ) Let the company know.
If silver stays under 40 this year i expect nothing more than about 200 million offer 2.10 would give us 3/share . So long as offers are in shares, the Galena stays with shareholders hopefully under a management that is shareholder friendly.
Silver Standard anyone...
The era of cheap imports will be over and we will pay far more
for everything from oil to the foreign-made plastic trinkets
that we buy at Wal-Mart.
I disagree that we will pay more for oil. As for the foreign made products (most especially that we buy at Walmart ), Great !.Lets stop buying so much foreign and buy American . Are we trying to support a retail industry or a manufacturing industry ?,in this country
I hear you oilizit. I agree with the long term investment of both but physical is dangerous NOW ,because we have no reason to believe ongoing put options on the silver market will stop. Equities have no place to go but up. G&S spot prices will be held in check for as long as it takes to get the fiat system rolling again. When that happens I will encourage buying of physical or CEF,GTU or the like. (NOT SLV or GLD ever)
If someone already has a storehouse of gold or silver ,I sure wouldn't recommend selling it,I simply see no sharp increase over the next year,maybe a mild one ,maybe 2000 gold and 50 silver,but that is very good for G&S equities but can't really make you a lot on physical.
In my laborious answers to manipulation (price fixing)and corruption (cronyism) I've tried to stay clear of what any Guru's say. It's not all wrong,the Guru's just tend to play with peoples emotions and self preservation while playing the markets . I do not subscribe to any service for picking stocks .
All what yourself and RY believe is true . There are a lot of Guru's out there who's success in the G&S arena is largely dependent on misunderstanding of investment upside or downside by investors that understand less than them. (including me) The other side of the argument is that History records Gold and Silver being the most steadfast currency the World has ever known but..... that still doesn't mean it will be currency. I think somewhere down the line G&S will likely be a partial currency collateral and with price fixing (to a degree ),likely to stay around for awhile,it seems to me well managed deposits of those metals should be invested in long term.
Corruption and manipulation exists ,it's widespread but just because it is morally wrong or ethically wrong does not mean it is illegal therefore loading up on physical metal seems dangerous from an investment stand point because that same corruption or manipulation will not go away. Laws like these are too complicated to simply enact. Congress's latest performance is evidence.
Another point--I would not be in the precious metals market to begin with (both as a "stacker" as well as a holder of precious metals stocks if I felt the market was so manipulated. Why be in a market where such forces can control your financial destiny?
Even Banks have limitations. Eventually the JPM stronghold on silver shorting will evaporate. The position is ,as I said inherited. They will look for market conditions that allow them to get out of that position and at that time the silver market will be more free. Does that mean silver will go up ? Probably, but then it will be subjected to someone else ,unless of course regulations are made to prevent it.
Basically, I see commodity markets as operating on supply/ demand fundamentals with added hedging which should bend or can change temporarily the supply/demand fundamentals but not destroy it.
When an institution with seemingly unlimited funding gets involved in commodities ,it destroys the supply/demand fundamentals .
This gets back to Banks with (seemingly unlimited funding from the FED) That's suppose to be Commercial Banks but since the end of Glass Steagall,it really makes little difference. Commercial Banks are suppose to lend,which is why they get FED RES. money but then they lend to other subsidiaries (Investment Banks)of themselves ,then use that cash to drive the price of a commodity out of it's normal supply/demand fundamentals.
Something is very wrong and JPM is a Prime example of this corruption but..... If there be no regulation,How can they be guilty (by law).
I agree with you that there are a lot of charlatans in the PM arena. I buy Projects of PM's,partially because of the commodity and partially because of the return that could be ,in the future with almost all currencies in decline. ,"Projects and Structure"
Again, the most recent case against JPM for manipulating the precious metals market was dismissed for lack of evidence
Yes,but it was dismissed because there is no regulation that makes a massive ongoing short position (which was inherited from Bear Stearns),illegal,though it most certainly should be.
I said months ago that the manipulation was not technically illegal. That does not make it right. I was hoping for decision that would give "no fault " to JPM (because their position was not illegal) and because it was inherited. Further a regulation,depriving Corp.or Individuals from ongoing PUT options of a tiny silver market is in the best interests of "Free Markets",therefore should be enacted. A judge could have suggested as much.
Silver Markets are manipulated ,so are Banks.The difference is the Federal Reserve is not part of the Silver Market. How can a Judge fine a company for doing something that is not technically illegal,until the day when Congress makes it illegal through a regulation.
Imagine a Central Bank that does not lend to a Commercial Bank at 0%,who in turn buys Treasuries that pay interest. Do all Banks get this privilege ?
How could our Central Bank assist JPM to take over Bear Stearns and take away their right to hold a very old silver short position ? Our FED RESERVE knew about the Bear Stearns silver manipulation but was powerless to slap their new Master with anything that could have scuttled the deal .A deal that the FED needed to have happen.
Manipulation is everywhere. What should be illegal is allowed to live on because the level of understanding gets more complicated by the day.
NyBob, I think this companies assets are worth fighting for. Bailing out at a loss for many people ,I would reject unless they have a better plan to utilize funds.Overall ,I've mentioned SSRI as being the most undervalued major and I still hold to USGIF being the most undervalued minor player in the silver arena.
Incentive options are a great idea but should be awarded at 100% above current share price. That way incentive works hard for management and harder for investors
IE; I think Pridham claimed share price should be at 3/share post merger. Being kind and lowering his expectation to 2.50 as a benchmark for awarding options,we could have seen 5/share options over 5 years.
This stock ,(despite a poor silver market) would NEVER have gone under 2/share ,would likely be at closer to 2.50. Investors look at what Directors believe the company is worth and act accordingly.If these guys can't get that,it's time they go leach off some other group of shareholders ,since regulations in Canada and the U.S, do not prevent this kind of exploitation to take place. In my view ,this attitude is destroying the markets .
US Silver is not a solitary abuser. Free Markets need rules or the freedom to play the game is lost. How about a football game with no rules. Could you really award a Super Bowl ?
I agree that the interest in Pretium's deposits are huge but..... What about the 100% interest in Pitarrilla . 479 million oz 's of silver in RESERVES.Everything about the project is good ,as I see it so far. (2nd largest UD deposit in the world)
Do you have any thoughts on this ? It seems to me SSRI has been marginalized by the market by screw ups in Argentina and it's key deposit given no respect.
Good point, Maybe they have enough votes to stop a shareholder revolt but if shareholders stick together we can stop the next insider deal,Wouldn't you agree ?
Remember ,we could have stopped the RX merger,had we been informed properly and trusted nobody other than ourselves who are all in the same boat. Remember that this board was firmly behind closing that deal down,but missed by a hair. Today we would have no debt, less shares out FD and 1/3rd more shares personally.
Expensive gold is not looking good near term and without all the waste we could have had more cash and bought RX for a song. There is going to be a lot of jr gold and silver miners go out of business if things don't change with spot prices. ALL IN COSTS are taking over BS cash costs system. This is a good company but I simply believe it needs shaking up ASAP.
NYBob, I agree that options are a good incentive to push managers to be creative in making the company excel but... handing out options at around current price really IS rewarding extreme failure.
There is no incentive for some new perspective shareholder to buy into this company at 2 bucs when options have just been given at 1.82. NONE. The incentive for managers is ... to keep the share price in the money ,which should be easily done by the POS alone.
You and others here have to stop defending the actions of the BOD's. It is very obvious they are not working in mine or your best interests. I have given them the benefit of doubt on several occasions but when they do exactly what I warned against,it seems time to cut the tie.
I am a believer in the Galena as one of the best silver deposits in the U.S. I do not think this management or the directors are incompetent.I think they are playing a game with our money and they are no different from a Union that believes there is nobody else around that can do their job.
The Chairman of the BOD's (Pridham) actually suggested a 3/share price after the merger. Look where we are ,but the options still keep rolling out.
They are trying to gain voting control of this company with themselves and the insiders like Sprott that are no doubt adding to their share count ,quietly. Low prices tend to do that. Unless some real changes are made in the new Year that show value being created by management I would implore all retail shareholders to begin a campaign to either change the minds of current BOD's into a more retail shareholder friendly company or expect no support going forward. In my opinion, we all have to be consistent and diligent of expressing our bad reaction to this latest slap in the face.
I spoke to Heather about a month ago and insisted that she tell Blasutti about my options concerns . (she agreed,I believe her ).I suggested that the best way to rally shareholders was (when awarding options),to give incentive options over 5 years at 100% above the current price . Black- Scholes says even, 0% is Ok,but industry standards are not going to get you any new shareholders,exactly what Mr. Blasutti claims is his objective.
I believe it is the objective of this management to bring in the goods and if the share price goes up ,that's great,if it goes down "doesn't matter".It's not going to change anything for them in the near term.
Maybe Sprott is orchestrating another deal and a lower price will suit all included much better. It is absolute now. I'm sticking around , no matter what and I will be prodding everybody on this board to VOTE to rid ourselves of this management at our next chance. (unless something changes).Remember that a lot of retail investors that voted with management last time did so,because they believed these guys would turn this into a winner . There is nothing that they seem to do that will help our share price, on the contrary,they do exactly the opposite and to me it means their motive is entirely self preservationist.
I was actually planning another buy,until I read this nonsense. We need to know their salaries and how much of the "ALL IN COSTS" of every oz of silver do they cost us. I really want that answer.
The company obviously took my plea to restrict options to "something that would actually help the company",as not in their best interests. Great Mining projects like Galena must be put in the hands of somebody that can open up the richness of the ore and actually SHARE that success with SHAREholders.
Management ,despite some bad luck at Woodrush this year,DID accomplish some important milestones.
1.Kokopelli is secure and we await production
2.South Rangely secure and production is underway
3.Roan Creek&associated property has been JV thereby giving us cash and more revenue with little capital.
4. Despite dismal natural gas prices and very little capital DEJ is promoting itself by the deepness of their portfolio,considering the market cap. Even at 1 dollar share price ,(these assets that are slowly being revealed in a tough market) are well under their NAV , if calculated using PD Reserves instead of real estate leases. This is the greatest milestone of this company and the market is still hesitant. Long term shareholders have suffered here but this is a very different company than 1 year ago,despite what the share price is ,IF you keep your eyes on the value emerging ,everything will turn out well, in 2013,imo.
Blasutti made a good deal (a life saver for RX shareholders). I've never complained about him because he was not with us at the time. I think the current management knows exactly what they are doing. Whether they make us a lot of money or the price of silver makes us a lot of money,either way USGIF is a solid investment at 3/share ,imo. I think the potential could easily see 5/share in 2013 ,probably in the latter half.
Downsideup has been trying to make us realize that the intrinsic value is not attached to individual common shares.So far ,that could be proven valid, but I disagree with his prognoses for the future. Blasutti and his people did exactly what most miners would have done,concerning my biggest criticism (options) .I've pointed out to them that the best advertising for this company (which is Blasutti's promised mandate) would be incentive options given to Directors and Management at 100% above the current price at the time of issuance.
This does not follow usual standards in the industry. EXACTLY why they should do it,when the time comes for awarding options.
Options to Directors and Management are not bad.They insure liquidity and strengthen insider ownership .IF ,they are awarded at double the current price,then the incentive for management to do a great job ,not just an adequate job is present. The incentive towards common shareholders to buy ,is enormous . It builds a base. It builds confidence for everyone involved and that makes our book value rise which makes our assets more bankable ,which makes our company better able to buy into great deals.
IMO,this is the financial side of how US Silver&Gold could become a 10 dollar stock .The other side is of course 50- 70/silver maintained over a year with futures holding steady.
I'm very bullish on this stock in 2013.Even if ,silver does not take off right away,I feel sometime during the year it will. It should . Those that are shorting silver and gold will likely pay more attention to shorting gold ,imo. Silver's Industrial use fits more in line with institutions that are promoting fiat currency.
Basically,Blasutti acted in the best interest of shareholders to turn away from a M&A . I wish people here would remember that the bad deal we went through was partially because Blasutti was our adversary ,essentially not for us and now he is .
If he makes a deal for us ,as good as the deal we were merged into, for the other side ,then we should do well.
Your the one that is not being honest with himself. Cash costs on most mines that are extracting silver are usually between 15-25 dollars IF you are not using other metals in the mine to reduce or off set those silver cash costs.
IE; GPL's Guanajuato in 2011 had cash costs of 8.15,Amazing ! or is it ? 959,000 oz's of silver and 7,515 oz's gold. The gold is why the cash costs are so low. (the more silver produced is really a much more important figure given the likely situation with the commodity ,in the next few years)
In an 85% silver mine like Galena, cash costs around 20/oz are fine IF SILVER goes where most people believe it should go. Predominantly silver mines will become much more valuable as silver ascends .That's a fact .Mines with higher zinc,copper or lead that keep cash costs down could work at a disadvantage in certain situations.
Of course ,it's always great to have a little gold to lower those cash costs but mines like Galena ,with NO GOLD ,will skyrocket as silver does and at 85% silver and 20/oz cash costs ,it will seem irrelevant to worry about 5 or even 10 dollars.