Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
"There is lies the issue"
Exactly.
The company is doing the right things the right way...
The desperation you express... is yours...
I don't share it.
I don't see any evidence that they've changed anything significant... other than that, with mutual consent, they've just paid SRSR a nice fee for an extension of the exclusive period in the process of negotiating the deal they're still working on... and they've begun doing some of the work the feasibility study requires in metallurgy...
It doesn't look like they're losing any time...
That agreement actually has moved the project forward another step...
They're not sitting around just waiting for anything...
They're sustaining the same effort as they were making before... and China has added some funding and contributed capability for completing significant new tasks... that ARE being done, now, along with the increment in the most recent extension of the ongoing effort that they're continuing...
Most junior explorers in the rare metals space would KILL to be one of the very few lucky enough to have Chinese assistance in doing the work they are...
Not a one of SRSR's competitors would rather see SRSR getting that help instead of having themselves in that position...
That's how wildly twisted the effort in misrepresentation here has become...
Listing to the GARBAGE posted here... you'd think working on doing deals with China... on the terms they've disclosed... and having them helping you with metallurgy studies... was the worst possible thing you could have happen...
It's TOTALLY insane...
YOU wanted a particular big change, delivered on command... and didn't get it... which doesn't mean that there isn't change occurring...
You need to realize...
THEY DON'T WORK FOR YOU...
They're not going to reorganize anything, or change how the Chinese government proceeds as it does the things it does... just to make you happy...
They're going to make their decisions, in their own time, based on the things THEY CARE ABOUT... and you can piss and moan about that all you want, and it isn't going to make a bit of difference... they'll continue ignoring you...
You can either deal with the reality of how things ARE done in the real world... or not... but, you choosing to be pissy about it isn't going to matter TO THEM... or, to me ?
What I see them doing here... is exactly the same as what I've seen them doing in every other deal I've seen them get done...
I'm not claiming that what they do and how they do it is "efficient"... or close to how I'd do it... but, the patterns I see here are fairly to extremely predictable... and what they do clearly works FOR THEM... exactly as they intend it to...
So, the "reconsidered to sign" crap looks to me like it is made up out of whole cloth... and, the only "source" for that I see... would be in bogus OPINION posted here... by clueless people.
I value that opinion at about ZERO....
That's about what it is PROVEN to be worth...
It's amazing to me... that people fall for the same old BS over and over...
Reality is... the timing will not be driven by any aspect of what some IHubbers will choose to worry about... or portray as "deadlines"...
China doesn't give a rats ass if you lose your patience and sell... ?
And, they shouldn't...
The IHub "bubble" world of postured negativity... is just not close to relevant in reality ?
The effort to generate "deadlines"... is total fiction... mostly crafted by IHubbers... intended to distract you from what IS happening...
They've been making steady progress... over a long period of time... which is easily enough recognized by anyone who DOES LOOK at the fact of change that has occurred over time...
Those who don't see it... don't WANT to see it... for a reason.
YOU want "an big event"... a discrete, giant leap forward that hasn't happened... because you're focused on the share price ?
They're focused on developing a mining prospect... INSTEAD...
THEY don't care near as much about that "big event" as they do about sustaining their focus, getting it right, and making steady progress in a way that most benefits THEM...
I've pointed that out, often... that that is in part a purposeful TACTIC... intending to apply patience in order to test yours...
Scott's handling it just fine...
Perfectly, in fact...
And, we see a proof of that in the terms of the deal he's working...
I note, again... that DEAL he's working... is WAY BETTER... than what the persistent critics here have said was possible...
The critics don't value the rocks... and constantly talk SRSR down... including SRSR "supporters" who never manage to find anything positive to say ? LOL!!!
Apparently China DOES value the rocks... and their opinion matters more.
If you don't have the patience for their doing things the way they ARE doing them... you should address that issue as a problem with your own expectations...
Scott's being persistent... and optimistic... while working as patiently as is required to "git er done"... and that's his job...
Others shamelessly advocate and try to encourage the opposite... because they want your shares...
And that's 95% of the "story" here...
Isolated Philippine typhoon victims running out of food
http://www.newsdaily.com/stories/bre8ba0dn-us-philippines-typhoon/
"Typhoon Bopha killed 714 people"
"Nearly 900 people are unaccounted for"
"About 20 typhoons hit the Philippines every year"
The work they are doing now... IS THE STUDY... or, a part of it.
You're making the rest up... while mis-characterizing what they are doing... you're simply WRONG. Period.
They've already "checked for themselves" and do know for a fact what the rocks have in them... or they'd never be talking to SRSR about doing a deal...
They're not guessing...
And, they don't really have a need to "check assays for themselves" AGAIN... by hauling rocks back to China... when there is ready access to independent third parties in Canada who are fully capable of conducting any basic assay work they'd want to do...
They're not doing basic assay work...
That's a FACT...
Claiming otherwise is not only arguing against the facts we have, it is wholly unreasonable...
China isn't being unreasonable in addressing the work...
What's being posted about it here... clearly is unreasonable.
They've already done at least two site visits... with two different teams of geologists... first a team from the company, and then a second team, apparently consisting of the guys from the Chinese government responsible for approving what the company says it wants to do...
We've seen the photos of the visitors on site...
We've seen the reports about their visits... from translations of Chinese websites describing what they're doing and why...
It's NOT a mystery...
It's also not like SRSR is the first or the only exploration company in Canada that China has shown they're interested in. The routine we see them going through here with SRSR isn't particularly extra-ordinary... rather than fairly routine...
What we see them doing here... is exactly what they've done in every other instance I've seen... and, I've seen the same processes occurring in more than one prior "deal" with China. So, the situation here isn't particularly unique... other than in the crowds of critics fabricating bogosities hoping to create "trading opportunities".
Not surprisingly... most holders will have ZERO interest in enabling "traders" in fabricating their fallacious fictions...
Holders will be holding... and not letting traders have many shares...
Not enough to matter...
The Chinese still just won't care what any shareholders opinions are... and they're not going to modify any of what they do or how they do it to just to suit you, or anyone else...
Metallurgy studies are conducted as a part of doing the feasibility studies, with the study focus being about OPTIMIZING DESIGN OF EXTRACTION PROCESSES.
To borrow development money from a bank... you do have to show them the minerals are there... but, you also need to show them that they can be extracted profitably... using known processes.
You don't bother studying how best to extract the minerals... from rocks that don't already have known values in minerals to extract, that are worth the effort in trying to extract them.
SRSR's rocks do have known values in minerals... and we already know well enough what the numbers in niobium look like.
They didn't ship rocks back to China just to check that... which would be ridiculous...
That doesn't mean there can't be "issues" that might result, after the fact, from having done the work... but, it's not all that common or likely for projects to be proven "feasible" in every other way, except for some pop up "issue" in the separations that are a show stopper.
What we already know of SRSR's minerals... doesn't suggest there is going to be much that is unique in that regard, that would pose a particular risk... although it appears there may be some features in SRSR's rocks that might provide unique advantages in niobium product quality... and there is clearly upside potential in minerals other than niobium.
Considering minerals other than niobium ? We don't know much about what else might be there, so there is more or less a blank slate in that area, which might generate some nice surprises, when we're also able to consider those values in things other than niobium....
I want honest management who treat investors fairly...
And, I'm honest in posting my opinion about that. Period.
USGIF management and board haven't been honest with their shareholders...
They've been self dealing...
It's not my responsibility to be "happy" about being robbed by them... because being dishonest about that might help con some other sucker... ???
"embracing external creativity and knowledge resources"...
LOL!!!
Ie., "patent infringement"... ???
Opening Up for Competitive Advantage – How Deutsche Telekom Creates an Open Innovation Ecosystem
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1472157
In my experience, in most convertible note financings, it is the convertible note holders who short shares, and the convertible note holders who benefit most from the lower share prices that naturally will tend to result from their shorting.
For many investors the whole point of owning PM stocks is to try to avoid having those sorts of "financial industry" risk factors imposed on you.
But, if the management work for the benefit of the financiers, and not the shareholders, there you go...
The number one risk in any investment... is management...
Understand well enough that you were addressing the lack of any reason to be concerned re the impact on the company, and not other things...
Storms really don't much bother things that aren't happening...
Philex had problems with their mine tailings pond last time around... which might be an issue for FECOF, too, but, hopefully that's a risk that's under control this by this time in the storm season...
I see the death toll is over 500 now, with the storm still posing risks to northern PI last I checked...
Could make Scarborough pretty dicey for Chinese fishermen ?
And that's the bottom line...
The asset value here is significant, and still understated...
And the management and the insiders appear they fully intend to realize most if not all of that value for themselves... and not you.
That probably makes USGIF into the leading tax loss selling candidate among the PM producers...
USGIF, with the highest value ores in the industry... and you see your investment is going down the tubes... FOR A REASON...
It's all about "the art of the takedown"...
Funny, isn't it, what you haven't heard from management ?
"We're not going to borrow any money"... because "we can fund all of our growth and development efforts from profits"... ???
Of course, they could do acquisitions using equity, too, instead of debt... which wouldn't necessarily be a bad thing, if the equity used wasn't grossly undervalued, and if the management didn't already own what they're selling to you, using your shares, which they want ?
They've had PLENTY of time to lay out a plan... showing they're not planning on screwing you...
But, they haven't...
It's right there on the charts... showing 890.6K shorted so far today.
That was a larger percentage earlier in the day...
I think the market has the trend about right...
USGIF the stock is under-performing... because USGIF the company is grossly, grossly under-performing... including to the degree that they're CLEARLY not properly meeting their fiduciary responsibilities...
The prior management had them rapidly improving their situation... and, now, even while still riding on the trends prior management established, they're barely sustaining profitability even with metals prices twice what they were under prior management...
The company is MISDIRECTED and MISMANAGED...
The rest, of course, is that you and I know that it is being misdirected and mismanaged ON PURPOSE... to enable the "takedown" and theft of the assets by insiders...
The company was ALREADY at risk due to being under-capitalized, under the prior management... before the merger intentionally layered in new risks and new capital requirements. That wasn't an issue before, with proper management, when costs were under control and they were PROVEN able to fund their exploration and development work internally from profits...
So, they COULD have sustained the asset and grown production while conducting the exploration work, without shedding 1/3 of the asset... and why wouldn't you do that... if you could grow the value without dilution in give aways, and without doing a raise ?
Now, costs are out of control... shareholders have already lost 1/3 of the value in the asset base to the insiders... and they're going to discover the "need" to raise additional capital... they are planning that... and you should expect they will discover they have that "need" just to sustain the operations and development efforts that they have.
But, of course, they intend to expand the requirement more than that...
There is ZERO reason that US Silver shouldn't be profitable and self funded... now...
There is ZERO reason that shareholders should have lost 1/3 of what they owned... in return for nothing but promises of additional and more substantial dilution in the future...
But, of course, they INTEND to make the project NOT self funding... because they want the rest of the assets for themselves, so they WILL create a "requirement" for new obligations against the assets they haven't already taken...
You HAVE ALREADY BEEN hosed over by these guys for 1/3...
But THEY'RE NOT DONE...
They will continue to shrink the value of the assets attached to a share... faster than they'll allow that value to be realized...
You own 1/3 less now...
Why shouldn't you lose another 1/3 ?
And, why should you be allowed to keep that 1/3... ???
Timberline Receives Draft Hard Rock Operating Permit for Butte Highlands Gold Project
http://finance.yahoo.com/news/timberline-receives-draft-hard-rock-130000919.html
Press Release: Timberline Resources Corp. – 6 hours ago
RELATED QUOTES
Symbol Price Change
TBR.V 0.335 0.06
COEUR D'ALENE, IDAHO--(Marketwire - Dec 10, 2012) - Timberline Resources Corporation (TSX VENTURE:TBR)(NYSE MKT:TLR)(NYSE Amex:TLR) ("Timberline" or the "Company") is pleased to announce today that it has received a draft Hard Rock Operating Permit for its Butte Highlands Gold Project from the Montana Department of Environmental Quality (MDEQ). The Company also received a Compliance Determination setting forth the MDEQ''s determination that the completed application for the operating permit complies with the substantive requirements of Montana''s Metal Mine Reclamation Act.
The draft Hard Rock Operating Permit and the Compliance Determination may be viewed on the Company''s web site at http://timberline-resources.com/main.php?page=196.
Timberline CEO Paul Dircksen commented, "This permit is a critical milestone for Timberline and our joint-venture partner. The regulators have been fastidious about our permit application, and we have provided thorough responses to each of their inquiries and comments. Our JV partner continues to fully fund the permitting and development at Butte Highlands, and they are actively involved and working closely with us to expedite the remaining permits and complete project development. The receipt of this draft permit and positive compliance determination from the MDEQ provides clear evidence that we will receive the final Hard Rock Operating Permit in mid-2013. We expect to commence gold production at Butte Highlands shortly thereafter."
As noted in the draft permit, the final operating permit is expected to be issued upon the completion of the MDEQ''s review pursuant to the Montana Environmental Policy Act and its determination that the project bonding is sufficient. Based on current projections, the Company expects that the reviews will be completed and the final operating permit will be issued in mid-2013. The Company expects to receive the water discharge permit and road use permit related to the Butte Highlands Project prior to the receipt of the final operating permit.
As announced previously, the initial mine plan at Butte Highlands will target production of approximately 400 tons per day for the first four years of operation with material direct shipped to a nearby mill. In 2011, Timberline completed a 50,000-foot (15,240-metre) underground drill program which returned intercepts of up to 14.5 feet (4.4 metres) grading 6.77 ounces of gold per ton (231.85 grams per metric tonne). The Company has also completed over 4,500 feet (1.4 kilometres) of underground development and completed construction of essentially all surface facilities for the project. The Butte Highlands Joint Venture is located within a favorable geologic domain that has hosted several multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City.
Will be interesting to watch...
This management have had a wealth of opportunities handed to them, almost all of which they've pissed away...
Short interest increasing recently... 75% of the volume today... makes me wonder what else is coming...
I guess I should note carefully what the timing is... but haven't...
Looks like a few shares short (1.25 mil) has capped the move on the daily charts... without dinking the weekly much... so, probably well worth keeping tabs on the timing of the next round of drilling, as you suggest...
It's another of those roundly ignored lightly traded issues... in which a little volume will steer the trade either way... and in which price and value have very little connection and precious little to validate them...
Still seems likely there will be an 'anticipation' trade...
My look at the technical aspects of the prior holes suggests bad decision making by their executives was the only reason they didn't bring them in as commercial producers...
Now, there's a more capable and experienced partner that will control completion of the next few holes... which, of course, doesn't mean they'll drill in the right spots, be lucky in the effort, or dodge all the completion issues in the next round...
Even giving up half, a successful completion will be a company maker.
DBRM had similar issues with the horizontal they drilled... that, with a bit of luck and better awareness of the local fault structures, could have made that well "the one" that pushed things the right way...
ZDEXF has a vastly larger potential, of course, than exists in the type of structures that DBRM is focused on now... in the knowns on the east side of the fault structures there...
"four drill holes and a minimum of 300 metres"
"300 Meters = 984.251968503937 Feet"
And, 984 feet divided by 4 is 246 feet per hole... which is REALLY shallow.
A deep hole would be 5000 feet or more...
Anything less than 1000 feet is shallow, IMO...
Shallow is good only because it is relatively cheap ?
Deep is better... when you're looking at columns of rock in drill core and trying to figure out relationships in the disposition of the rocks ???
If they drilled in Oct... they should have results... soon ?
"appropriate correction", part deux ?
Typhoon kills at least 283, hundreds missing, in Philippines
http://www.reuters.com/article/2012/12/05/us-philippines-typhoon-idUSBRE8B306420121205
Mostlyhorse manure... as usual...
Particularly the bit about you "winning" any arguments...
I don't see evidence in the charts that the shares put to the market recently to "cap" the rally are consistent with any prior pattern in a history of "dumping". The numbers show there aren't enough "real" shares that exist in the market for that pattern to be continued... and the prior pattern that did exist... ended back when we discussed that it had reached a natural limit.
Of course, that doesn't mean you won't have a problem with some flamer who might find it useful to try to "simulate" that pattern... to use their own trading as a reason to diss others participation in the trade...
You generally do have to actually own shares to "dump" them...
What the charts appear to show is that someone may have done a trade that resulted in shorting shares to "cap" the recent move... apparently leaving a net short of at least 120K shares...
Otherwise, you'd need an alternative explanation for a source of shares
available to be put to the market... which "put" is what you see happening when there's a big red candle... paired with solid green in the accumulation. "Selling" that results in red candles with green in the accumulation is either shorts... or some other shares being "put" to the market... meaning either direct "dilution" occurring, or some other "new" shares sold by the company coming to the market. That might happen as a function of using shares as a form of payment in doing a financing...
I've not checked the filings here recently, to see if there are any "new" shares in the market now, perhaps originating as a fee paid in enabling a financing, that might work to make that explanation viable...
Prior patterns in distribution here showed a time series function in an obvious strategy being operated to sustain distribution... with a fairly predictable time function as an element. That trade appears its been done for a long time... and, that's pretty clearly reflected in the shift on the charts from 2 million shares in distribution as that trade wound up, to a bit over 1 million in accumulation now...
Now, both Williams %R and OBV are saying DBRM should be trading higher... while the volume weighted "fair value" is $0.09 to $0.12.
The chart dynamic is pretty clearly more favorable, now...
But, that dynamic and what the charts show now are "trading" issues... not fundamental factors...
If the company performs well fundamentally from here... there's not much of a reason in the charts, now, that it shouldn't trade higher.
If the company doesn't follow through with proof in performance that enables them in countering the recent negative trends in their cost of financing... then the shares likely won't trade a lot higher, whether the chart "allows" that or not...
DBRM hardly the only issue in the market struggling with finance, now, given the fact of the non-existence of the "easy financing" that is supposed to be made available to the market by banks... as a function of the near zero interest rates intended to enable that. DBRM and the economy will both continue to struggle as long as the ongoing failure of the financial system continues to impose the ongoing stranglehold on economic activity...
Beyond that...
Seems pretty pointless to diss the quality of what they're capable of producing, when the VALUE and PRICE they're getting for what they do produce... is quite a bit BETTER than the market price for that WTI benchmark you were suggesting was an "unreachable" value for them...
I'll agree with "irrational"...
Old news, but ran across this link this evening...
http://www.mining-technology.com/news/newsmontana-state-gold-acquires-50-stake-of-highland-mining-in-butte-highlands-jv
Surely you're not saying that "the market"... is stupid ?
Just because the information has been out there all along... being ignored by the market... as last week the market priced the "knowns" at $1.40 and this week the same "knowns" are being priced at over $2 ?
The fact that price changes of 60% and more can occur with very little resistance when there is "adequate liquidity" provided to enable it... liquidity "works" even if there is an information vacuum ? And, it works even if there is only an information vacuum between some traders ears ? But, the fact of market functions means that everything is always properly priced ? Right ?
/s
The role of liquidity in the market... is to enable over pricing and under-pricing... which you need to generate volume... because, if everything were fairly priced all the time... that wouldn't be any fun, there wouldn't be a reason to trade, and market makers wouldn't make any money ?
Oil and gas aren't the only thing in the PI worth caring about ?
http://www.zerohedge.com/news/2012-12-04/first-japan-then-india-now-vietnam-china-unfriending-everyone
http://www.zerohedge.com/news/2012-12-03/india-sets-naval-showdown-china
"the last 30 days have seen the largest physical gold sales on record"
http://www.zerohedge.com/news/2012-12-01/chart-keeps-ben-bernanke-night
I've never had a reason to be critical of the asset quality or exploration potential... which it seems I've thought a lot more of than company management have... for a long time. I was critical of prior management for not addressing the exploration opportunity aggressively enough... but, they'd already shifted those gears a few years back, now, which means the (still early) results of that ongoing exploration effort, now, aren't a reason for ignoring issues the new management have... ?
I think they should be less conservative than prior management was in addressing the focus of the exploration effort... but, I don't think they should be any less conservative in how they REPORT RESULTS. I'd prefer they continue to address that without having PR being MORE focused on the content of their forward looking statements than THE ACTUAL DATA...
The new guys... CLEARLY aren't the first to recognize the potential ?
The potential IS becoming better recognized, now, with awareness that the higher grade copper zones that CDE mined may not be fully "played out"...
and, the LZ with a different approach to mining it... is another interesting new potential... that still needs to be much better defined...
I am noting a change in the tone and focus of PR... that is a reason for my new expression of concern... only MORE because the Drumlemmon seems it ISN'T producing the greater than 7 oz per ton value that was advertised for it... by the team now managing U.S. Silver... before we saw actual data defining a vastly lesser resource...
I'm not talking down the potential...
They are... by virtue of the METHOD applied in the conversation...
They should show us the model... the disposition of drill holes... and what needs to be done before you can begin to have reasonable confidence in "what's there"... and, then, forward looking statements that are conservative will be MORE convincing... than the "pump" skirting NI43-101 reporting rules and SEC Rule 9... when there is already a recent, less than useful track record that requires devaluing their inputs.
And, then, the issue ISN'T ever "the assets"... when there are concerns with management and good reasons to question the integrity of the attachment of the assets to the shares...
In fact, the opposite IS often true... as "more" value in the known assets frequently justifies "more" in takings...
They're pretty clearly getting WAY out ahead of themselves already... talking about doing ANY financing, when they've not even identified a resource, much less a reserve...
I detest the future focused "pump" the PR has become, already... instead of the conservative fact based reporting of accomplishment, after the fact, that it used to be...
There's nothing wrong with factually reporting the drill results, obviously...
And, there's nothing wrong with "focus" or planning to address and develop opportunities...
But, the reporting rules do appear to require taking a more conservative approach than they are...
And, then, prudence and business judgment... matter.
They're wanting us to ignore the problems... and pretend they've already been solved... while shifting their focus to addressing "blue sky" instead of fact.
Maybe that worked at "blue sky project central" RX...
Here, I give that a snowballs chance in hell...
We appear to be slipping from "uplist ready" to "pink-a-fied"...
"pursuant to 35 U.S.C. §§ 102 and 103"
I would like to see the non-disclosure agreements that bound T-Mobile and limited their use of CLYW IP... and, then, it might be interesting to have a look at the time lines and the content in their own various and related applications... and those of others with whom they held confidence ?
Given T-Mobile's violations of CLYW's confidence... I'm sure others must have already looked at some aspects of those things...
But, who knows... crowd sourcing larger awareness might be useful.
I wonder if that's already been filed and made a part of the public records ?
I'll predict...
They ARE going to do a deal like that...
Not because they need the $$$...
This IS already a profitable producing mining operation, making any talk of convertible note financing... INSANE... unless you're the one getting the benefit of the below market deal they'll do that screws over existing holders... that clearly will have them violating their fiduciary duties. The fact the company is profitable... is an easily solved problem... and they've already TOLD you that they intend to fix that problem...
Convertible financing... INSANE...
But, they'll do it... because the events of the last few months already stink like dead fish... and that's the surest way they have to guarantee control... is by diluting your vote into oblivion while substituting theirs... before there's another vote that needs to be held...
If it were about $... sure, they'd rather focus on doing the work in finance only AFTER they've justified and can sustain a much higher share price. If there were a legitimate effort seeking "realizing the value"... then there probably wouldn't have been any problems in "uplisting" before this... ???
But, it's not about the $... it's about the %... safeguarding their takings... and the need to subvert the legitimate process to take control.
And, for that, they'd rather do a deal for LESS... at a lower price... which only benefits them more... at your expense.
Convertible financing is now "the answer" ?
LOL !!!
I've been telling you this was coming ?
They are DESTROYING this company...
You need to keep in mind that "the computer" isn't making any decisions...
If it is computers making the trades, and not just retail trade execution you are seeing, it is still simply a tool that is implementing the set of instructions that have been coded for it...
Total BS to try to claim the trade is automated and thus a neutral element of the landscape... because computers do exactly what they're told.
So, the more correct question... would be focused on and be about the trading strategy... rather than tools used in executing the strategy...
That's even more true in the exact situation you've accurately described... which is addressed directly enough in this remarkably terse and sparse yet precisely relevant coverage:
https://en.wikipedia.org/wiki/Trading_strategy
https://en.wikipedia.org/wiki/Algorithmic_trading
Can agree with "some" of that... although, I can't speak to any expectation you have that there must be any "good guys" in place now... who were invited in by Sprott... ?
I won't accept on face value that any of the recent hires understand that they work for shareholders... when shareholders didn't hire them...
It clearly doesn't "fix" anything... that they're self interested actors who've been empowered in acting in their own self interest... at our expense.
And, I won't posture that the solution to Sprott's cantankerous rooster act lording over the flock and claiming his vote is the only one that counts... is to invite a fox from private equity into the hen house to "balance things out"...
I don't think you can ignore other "bankster" risks either... with the malevolent evil that is JPM still not making Sprott into a good guy...
Hecla clearly wasn't confused about the value of the assets... and they weren't doing shareholders any favors with their offer... so, I don't see any reason to alter my opinion of their
So, I will agree there is a need to throw the bums out... without qualifying any of the current participants as not equally deserving of our contempt... and without claiming I can see a clear path to a proper restoration...
Sprott clearly has not earned our respect or support... but has provided plenty of reasons for shareholders to oppose his interest and participation... and to oppose any management that tolerates his obstruction and interference... not just here at U.S. Silver.
So, I think we mostly agree... but, there is very little I'm willing to take "on faith"...
Until management prove a meaningful connection exists between ownership of a share... and the assets... the assets don't matter.
That's a FACT.
You can talk around it all you want, while wanting it to not be true... but, it's still a fact...
The DD comparing the per share asset values here versus others... doesn't matter... if the value isn't attached to a share.
This is a broken company...
It's not broken because the assets aren't there...
It's broken... because they stole it and broke it...
And, they INTENDED to break it ?
Otherwise, you're left with a need for comparing COMPARABLES...
The point there is that it appears "what" they're mining isn't nearly as important as "who" is doing what to the value of your shares, and how and why they're doing it...
So, check USGIF against other companies Sprott is involved with... and wonder why it is that LSG and CDY charts... seem to have similar features in the chart patterns they do... ?
Sprott doesn't care about anyone else's interest... ?
Sprott cares about Sprott... and he'll gladly screw you to benefit himself... ?
That's what the charts seem they're saying...
That's a PATTERN you can see developing at LSG and CDY... where Sprott has become involved only recently ?
I guess that same thing would explain well enough why USSIF has remained persistently undervalued relative to comparable silver mining companies, over the last 5 years ?
So, I think that still leaves you needing to explain... what are you expecting is going to remove the "Sprott discount" you can see being forced deeper into the share price, now ?
Why would you expect that change to happen... when the evidence suggests... you're more likely to see USGIF charting, over the next two years, more like LSG has been charting over the last two years ?
I don't think the issue is that someone else is following Sprott around and driving down the share price in companies he supports ?
Sprott has a responsibility to the shareholders of the companies he invest in...
What I'm seeing... looks like clear evidence that I don't ever want to own what Sprott owns... because Sprott's interests are mismanaged... and his "brand" kills value...
If you take out the bounce on the HL offer... USGIF opened at $2, and it's trading back there and below now...
If you take 2/3 of the ex-HL offer $2 trade... you get $1.32
Interestingly... on the split and combination adjusted chart... that's roughly where USA.TO traded... from roughly May through August ?
I don't see that there's been any real addition of value in the events that have been orchestrated this year...
Even if you value the Drumlemmon more than I do, you still have to explain away the issue in the offset in the "takings" of 1/3 of the combined equity... showing management hosing over both the USSIF and former RX holders...
In the result... I don't see a reason the combined company, post reverse, should trade higher than it did before the combination ?
I think I've already explained why I think "less" is justified.
And that's the point of doing the DD...
???
The assets here obviously are real...
That doesn't mean they're not being stolen from you, incrementally.
That's what I see happening...
I'm not happy about it...
But, I'm not going to pretend I don't see it, and should ignore it... when its obvious...
The "new guys" have had plenty of time to settle in...
They've had plenty of time to explain their plan, for how they're going to benefit you by reversing the trend in the shrinkage in the % of the value that is attached to the shares... now that they've taken their 1/3... ?
So, we should expect to see them step up and address these concerns honestly ?
I don't think I've been unclear...
USGIF is a problem, now... because CHANGE has the insiders self dealing and they've been raping their shareholders.
Yes, "the assets" are worth more than what a share price reflects...
But, the share price increasingly reflects the fact in the LACK of ATTACHMENT of that value to a share... and the TREND in the shift is not yet close to having that risk be properly priced... and the TREND is not yet fully developed.
My opinion is that the current price does not come close to properly discounting the history in the portion of that risk that is PROVEN... which risk holders have been being forced into realizing, more and more over time, post Parker...
There are other things that CHANGE and subsequent ACCELERATION IN CHANGE will mean...
Among them... you should not ignore the obvious implication in relation to future funding requirements... given the parallel efforts being made to devalue equity (by altering the attachment of value to equity)... and increase the requirement for capital investment.
I pointed out yesterday... that the market cap is around $100 million... and they've just identified the need for $200 million in additional capital ? And, that's before they do more deals... that require paying insiders off with more of your equity... while increasing the need for capital ?
HELLO ???
They've killed any potential for raising equity... because they want to kill the equity... and transfer the value from the equity owners to other investors.
What you need to recognize in the wake of recent events... in the "vote" and its implication... extends beyond the issues in the lack of integrity and the PRIOR failures in fiduciary duties that are apparent. The NEW fact that proves is... they don't work for you... and they aren't working to benefit you.
I've separately pointed out the MO in the "takedown" evolving here will include leverage... that will accelerate the removal of asset value, by creating new claims against that value that exists... which will be superior claims to those of current equity holders.
They are going to load this pig up on debt... and they are going to use that debt to take the value back... and they are going to take all of it...
So, yes, the assets justify the investment... but, they're ensuring that the only way to benefit... the only ones who will benefit... are those in position to lend them the $ they want.
Who do you think is going to lend them $200 million ?
JMHO
"They just took 1/3... up front ?"
FWIW, 2/3 of what HL offered for "the assets"... is $1.78 ?
So, I guess we're almost down to a price that properly reflects the asset valuation in the HL offer...
Of course, that still wouldn't be more than a linear adjustment in price for the fact in "taking" 1/3 of the value. That wouldn't account for the implication in value and the market impact tied to the change... given the lack of stickiness that was expected to be attaching value to a share...
When the insiders have sticky fingers... it matters what gets stuck to what by who and how...
"All you can do is realize that the net asset value of the property and infrastructure will eventually be realized by the market. Always happens so long as the assets are real."
And, that's exactly incorrect...
It ALWAYS matters more... WHO is going to realize value that exists... you... or "them"...
The lack of integrity in the market... isn't news...
The fact of it requires you be well tuned to changes that alter the tilt of the playing field in each issue...
Parker leaving... tilted the field away from investors... and we saw the impact of that shift evolve in performance of the company, and in the acceleration of "takings" by insiders...
And, then, another sequence in change has occurred recently... which was not neutral or an improvement in that regard... rather than "more, faster" in the removal of asset value and its transfer to others... and "more" in the elements re governance considering the conduct of the "vote" and the implication in the various changes following it...
From an investors perspective... this thing is heading the wrong way... and accelerating...
I don't think it surprising to see the impact of decisions made, that HAVE reduced the value of a share, being reflected in share price...
Some are always slow to recognize and accept the fact...
Assets held in trust don't have any value... without that value being fully dependent on the integrity required to ensure fiduciaries meet their obligations.
Here, the insiders are helping themselves to large portions of what you used to own... shrinkage occurring that makes the rest of what you still own... less well owned... and less valuable.
The value doesn't matter... if what you own is taken... so that value won't be realized to benefit YOU... ?
They just took 1/3... up front ?