With 25,000 ounces at $1,300 BRD would have revenues of $32M. Cash costs would be about $21M, including interest. This would create about $10M in cash flow. They need $2M for loan payback so they would have about $8M for capex and exploration. My guess is that they are all ready trimming back their capex budget for the rest of the year. I doubt that very many companies are making money at $1,300 gold. We should see some closings coming pretty soon and a lot of production should disappear from the market.

I've got to believe that this was a hedge fund that is in deep doo doo. They were probably forced to sell at any price they could get. Some other fund was willing to take their pants and buy at a 20% discount to the market. If this happened with other stocks after the close it can probably all be traced back to one fund that had to liquidate. JMHO

My only interest here now is curiosity. After having been 100% invested in USGIF and convincing many to buy the stock I am interested to see what will happen. I see the coming vote and the option issue as totally irrelevant. The options are worthless now and mean nothing. If management knew that Drumlummon was going to close they would have waited to issue themselves options at lower prices. I focus on financials and the financials are very, very bad right now. Drumlummon has about $4M in accounts payable. When the mine closes all those payables will need to be paid. Laid off miners will have severance pay to be paid. Miners will still be working to carry out water reclamation and the electric bills, water bills, insurance bills, security, etc will still need to be paid on an ongoing basis. $80,000 per month in loan interest will still need to be paid. Galena is also bleeding cash right now. They received $18M in cash in quarter 1 and should receive $12M in quarter 2. Running out of cash very soon is a strong possibility. I expect working capital to be close to 0 by June 30 compared to $37M on March 31, 2012. This company is in a bad way right now financially due to Drumlummon. They desparately need silver to recover very soon.

A lot more people will vote on a merger than will vote on a regular annual meeting vote. Keep in mind that 30% of all USA shares now belong to ex RX shareholders. Those people have no axe to grind as their investment would be worthless now had it not been for the merger. You also have many shares that were purchased after the merger. These new investors did not have their shares stolen from them. The number of angry USA shareholders that are still here since before the merger is likely not very substantial. If I owned any shares I would certainly vote no, but reality is that the vote will not even be close. The focus now is on the new financing, the price of silver, production and cash costs. That will tell you where this company is going.

Sprott has about 9M votes to support current management. Does anyone here have 9M votes to counter his? The vote is a joke. Nothing can be done through the vote and nothing will change unless Sprott wants it to change. The only thing likely to change is that Sprott will likely become the new creditor when the loan is refinanced.

I understand that Cormark is getting advice from Barrack Obama's staff on how best to handle this situation. Anyone filing any complaints about this situation will have their taxes audited. Anyway, what difference does it make?

Wouldn't a class action lawsuit be the way to go? If you can find attorneys willing to handle it just for their cut it wouldn't cost anything upfront. I didn't lose that much, but I know a lot of others did. The problem is that if you win they might just file for bankruptcy which could happen anyway.

A lot more people will vote on a merger than will vote at the annual meeting. Most people just don't care that much. There are some very vocal people that do care, but they are very much the minority. I'm not saying don't vote. I would. I'm just saying that realistically it's a waste of time. The problem with the loan is not just the $7.9M. It's the fact that it likely will not be enough. Cash went from $19M to $11M in quarter 1 when silver averaged over $30. What do you think will happen with silver at $23? The following is the amounts of working capital that USGIF has had over the last four quarters: March 31, 2012 of: $37.3M, June 30, 2012: $29.3M, Septembher 30, 2012: $22.2M, December 31 ,2012:$16.0M, March 31, 2012:$11.8M. Does anybody notice a trend there? That was all accomplished when silver was above $30. What happens with silver @$23? Take 2.5M ounces of silver a year and multiply X $7 to get how much less cash USGIF has coming in than they did in the last year. Did anybody else get $17.5M? So their working capital declined by $25.M in the last year with silver at $30 and now they have $17.5M less cash per year coming in. That doesn't sound too good? To make things worse they have $1.1M less coming in from their copper & lead due to price declines, they have $960,000 per year in interest to pay on the loan and they will have ongoing losses at Drumlummon as some employees will remain to do water reclamation work.That doesn't sound too good either?

I no longer have any shares so I won't be voting. I really think you are all wasting your time. Keep in mind that Sprott has about 15% of the shares or about 9M votes plus they have the shares of the directors. You only need half of the votes actually cast to win. Most people do not bother voting. Can you at least send them a message? You can if it makes you feel better, but do they really care with 9M+ votes in their pocket? All directors will be elected and retail investors have no say in this company. If you still have shares you are pretty much at the mercy of the silver price. It's the only hope for USGIF to survive.

The gold stream is not a loan, but they took out a loan in order to buy back 4% of the goldstream. They have payments of $2M per quarter to make on that loan beginning in June. Whatever gold is sold through the gold stream is calculated as revenue at about $1,050 per ounce. That is because BRD is carrying deferred revenues that get added to the revenues each quarter. To get revenues you take gold sold for the quarter(28,000 ounces) and multiply by the average price ($1,620). We know that revenues were $45.0M for quarter 1. We then subtract the ounces sold under the gold stream(2,200) X $570. BRD lost $570 in revenue per ounce because revenues were calculated at $$1,050 instead of $1,620. This results in a reduction in revenues of $1.25M. This results in revenues for quarter 1 of $43.7M.

BRD probably had revenues of $43.5M and cash flow of about $21M for quarter 1. They likely spent about $15M on capital expenditures. With 26,000 ounces of gold at $1,450 in quarter 2 they would have cash flow of about $14M. They have announced that capital expenses are expected to drop in the second half of the year and again next year. The worst of the capital spending is over. If gold remains in the $1,450 area they should be able to cover all capital expenses and pay the $2M per quarter on the goldstream loan with cash flow. If gold goes much lower they would need to cut back on capital expenses. If gold goes much lower some gold miners will probably shut down, but BRD would survive due to their low cash cost.

The lid will blow off big time next Tuesday.

It is now just 14 days until BRD will be reporting revenues of $43.5M and IMHO a profit of $16M or .07 per share for quarter 1. They likely took in an extra $9M in cash so the cash position will increase or debt was repaid. BRD has announced it's intention to reduce it's debt by $18M in 2013. With gold at $1,470 BRD takes in enough cash to meet drilling and developement expenses plus an extra $10M per year.

Well said! The Drumlummon mine was over before the gold market crashed. The $2,300 cash cost in quarter 1 showed that the mine cannot operate at a profit. Who are they going to sell it to now? They might be better off to just default on the $8M loan and let it go. What USGIF got for 1/3 of their shares is $8M in debt and the cost of keeping the mine on care and maintenance permanantly. They also got lots of high priced management payroll, extra G & A expenses, interest expenses on the loan and extra depreciation to write off each quarter. USGIF is now back to a one mine company that has revenues of about $16M per quarter. Does anyone actually believe that they can make money and continue exploration and develo9pement with $16M in revenue?

U.S. Silver & Gold closing Drumlummon mine. This mine was only producing about 4,000 ounces of gold per quarter, but if gold stays down you will see more of this. Gold can only drop so much and higher cost mines will close. BRD is sitting pretty with it's very low costs. They will be a survivor no matter what.

I went on vacation. I have been investing for 50 years and I have learned that when the market gets like this you walk away for awhile. I didn't look at BRD for two weeks until today. Seldom in my 50 years have a seen a company about to release such mind boggling results. BRD should go from reporting $4M in profits in quarter 4 to reporting $16M in profits in quarter 1. That in incredible. It will change everything about how the market views BRD. BRD likely increased cash by about $9M in quarter 1 or they reduced debt. Beginning in June they will reduce debt on the goldstream loan by $2M every quarter. Based on $1,450 gold BRD has enough extra cash to fund it's capital requirements and pay off the $2M each quarter. Capital requirements are expected to drop in 2014. If you can wait 18 more days you will get treated to quite a fireworks show on May 14.

The first quarter numbers were a disaster. It looks like USGIF will not survive IMHO. They bled $8M in cash in quarter 1 with silver at $30. Revenues should be around $21M and there should be a substantial loss. Revenues in quarter 2 should be about $17M. Cash costs were higher in quarter 1 with no improvement in production. They will need to do a refinancing soon and I expect it to be more than the $8M they owe now. They will need to go deeply in debt or seriously dilute. If silver doesn't recover to $30 soon IMHO they cannit survive.

Bleeding cash. U.S. Silver began 2012 with $26M in cash and at June 30 they had $18M. They ended the year with about $19M in cash. RX had about $3M in cash when the merger happened. Also, RX had a large inventory of gold and silver on hand when the merger happened. If you look at 3rd quarter revenue you will see a huge increase in revenue because Drumlummon sold way more than they produced. This was a one time revenue blip as all the inventory was turned to cash. They had $5M of extra inventory that they sold that quarter. Despite this extra $5M they got and the $3M in cash Drumummon had their cash at year end was only up $1M from June 30. The point is that they burned through $8M in cash in the first half and $7M in cash in the second half with a $31 average silver price. About $2M was spent to repurchase shares and about $2M-$3M was probably merger related. That means that for the year they burned through about $10M in cash from operations based on $31 silver. So what does that mean will happen with $24 silver? 650,000 ounces X $7 means a $4.5M reduction in cash every quarter. If they bled $10M in cash from operations last year they are currently running at a cash reduction rate of $28M per year, excluding Drumlummon. With their $7.9M loan due on July 1 I repeat that this company is in deep doo doo.

Revenue 14,714 37,706
Cost of sales (13,585) (29,951)
General and administration (2,850) (4,328)
Exploration costs (1,386) (2,593)
Sales and marketing (40) (99)
Loss on derivatives - (1,316) - (1,926)
Foreign exchange loss 8 (13) 1 (37)
The best way to figure all in costs at Galena is to go back to the 2nd quarter report before the merger. For the six months they had a cost of sales of $30M and G & A of $4.3M and exploration of $2.6M for total cash costs of $36.9M. About $5M of that is for non cash depreciation. That means that all in cash costs were about $32M. That is just under $30 per ounce based on 1.1M ounces produced for the six months. If they can produce 1.3M ounces per six months now that should come down a little, but I think $26-$28 is a realistic expectation for this year. Copper and lead revenue are used to reduce costs. With those prices also sharply lower the reduction to costs will be less, adding about .65 per ounce to cash costs. The problem is that G & A expenses are higher now after the merger and exploration went way up after the merger.

I agree with this number on a cash basis. It would be more if you added non-cash depreciation. That means that Galena is losing $2M per quarter and IMHO Drumlummon is losing $2M per quarter in cash. If you add non-cash depreciation they are currently losing about $6M per quarter. They were close to break even before and revenues have dropped by over $6M per quarter. One problem is that if they put Drumlummon on care and maintenance there will still be some expenses(security, electric, etc). There will still be a loss associate with Drumlummon although a smaller loss. They will also need to keep paying interest on the Drumlummon loan. It is a lose/lose situation at Drumlummon.

The cash costs at Galena are around $20. The cash costs at Drumlummon are based on gold and are more than $1,400 per ounce. Cash costs are only part of the equation. They spent $3M in cash on drilling in quarter 4 and G & A is probably running $1.5M-$2M per quarter. They are paying about $50,000 per month for interest on their $8M loan.The math is pretty simple. Silver was $32 in quarter 4 and is now under $24. How much is 650,000 X $8? I get $5.2M. Thats how much lower silver revenue is now compared to quarter 4 when they were breaking even. Now take 3,800 and multiply X $300. I get $1.14M. Thats how much lower gold revenues are now at Drumlummon than during quarter 4. Adding in drops in copper and lead and total revenues are running $6.5M less than during quarter 4 and you think they are breaking even? This company is in deep doo doo. I'm not saying bankruptcy, but surely the end of all drilling for now and probably shutting down Drumlummon. A very quick rally in silver would save the day. Without that look for severe losses.

the cash position as of March 31 is going to be vital. Silver settled at an average of $32 in quarter 4 and an average of $30 in quarter 1. My guess is that cash will be down as of March 31. If cash dropped with silver at $30 what will it do with silver at $24? Trying to change management right now isn't going to help. The key is how fast they can reduce expenses. Can you really lay off all those new miners that you just spent a lot of money to train? Perhaps you can cut everyone back to 30 hours a week? Revenues are going to drop another 20% if prices stay this low so all expenses must drop by 20% just to keep even. Don't get mad at new management yet over this until you find out what they are doing about expenses. How fast they react will determine whether the company survives if prices stay low. You will know more soon either from the annual meeting or the 1st quarter report around May 15.

They probably don't have $19M in cash now. Keep in mind that they had $8M in cash coming in each month to operate on and now suddenly they have $6M in cash coming in. They were staying even on cash before, but cannot with these prices. If silver stays at these levels they will be bleeding cash.If silver recovers quickly they will be fine. If not, then they need to start cutting expenses as fast as they can. If cash drops to $15M I don't think it would be wise to pay off the $8M loan and be left with only $7M unless silver has recovered.

It's all about survival now. The $7.9M loan is due by July 1. I don't know if they can work out a 1 year extention. I'm sure that Sprott wants to get in on any additional financing. I don't know if he would be willing to do an all cash financing. I'm sure he would want a lot of warrants and that could be the reason for the beat down. If they borrow $20M they would have about $30M in cash after paying the $7.9M. Silver can't stay this low too long or mines will be closed and projects will be postponed. It's a matter of being the one that survives. Sprott can get 10% interest, receive a bunch of cheap warrants and dramatically increase his ownership in USGIF with a financing. It would make a lot of sense to short some shares at $1 then Buy them back at .60 after making a financing deal with .60 warrants?

It's all about survival now. The $7.9M loan is due by July 1. I don't know if they can work out a 1 year extention. I'm sure that Sprott wants to get in on any additional financing. I don't know if he would be willing to do an all cash financing. I'm sure he would want a lot of warrants and that could be the reason for the beat down. If they borrow $20M they would have about $30M in cash after paying the $7.9M. Silver can't stay this low too long or mines will be closed and projects will be postponed. It's a matter of being the one that survives. Sprott can get 10% interest, receive a bunch of cheap warrants and dramatically increase his ownership in USGIF with a financing. It would make a lot of sense to short some shares at $1 then Buy them back at .60 after making a financing deal with .60 warrants?

I feel like one of my children died. Fortunately, I got out at $2.70 and $2.15. For those that had USGIF before the split your shares are worth about .10 as 1/3 of your shares were stolen from you. My guess is that a financing is coming. The $7.9M Drumlummon loan runs out on July 1. USGIF is likely bleeding cash right now. Silver that was shipped in the first quarter at $29 is now being settled at $23 causing stunning losses. with gold down $350, silver down $8, and copper and lead down cash flow has dropped by $6M per quarter since quarter 4 when they barely broke even. Drumlummon needs to be closed and all drilling stopped until silver recovers. The financing will likely include a lot of new shares and low cost warrants. What a shame that the merger destroyed this company.

The average investor doesn't have a clue as to how to compute what a company is making and very few know that BRD sold almost 28,000 ounces of gold in quarter 1. The average investor believes that Brigus is a company making $4M per quarter. It will be quite a jolt when they see that $16-$17M profit. The reaction to a $16M profit will be far different than the reaction to a $4M profit.

I just came from the flea market where I bought two ten ounce silver bars for $600. They have three dealers there. One was closed because of no inventory. I bought the last of the second dealer and the third had about 25 silver rounds left. Keep in mind that if gold and silver drop much more some higher cost mines will start to close.

With gold at $1,300 Brigus would earn $5M per quarter or .09 per share per year. Cash flow would be about $11M per quarter. Many higher costs mines would close with gold at $1,300.

30 days to wait. Nothing can stop the incredible revenue and earnings release that will come out on May 14. Who knows what will happen between now and then, but for sure revenues of $43.5M and earnings of $16-$17M are coming on May 14.

I just bought some more. In 33 days we will get the news of the staggering profit of $17M and news that debt was reduced or cash increased. BRD took in about $10M more in cash in quarter 1 than they needed for capital expenditures.With gold at $1,550 they should take in about $5M more in quarter 2 than needed. They all ready announced that capital expenses should be down in 2014. This comp0any hs huge profits, a big increase in production and is reducing debt.

The $1,626 price excludes the impact of the gold stream. You must reduce revenues as about 2,100 ounces were sold under the gold stream. $43.5M should be pretty close for revenue after taking out the gold stream sales.

Staggering $17M profit on the way. According to my calculations BRD will report revenues of $43.5M after allowing for the gold stream. I expect profits of $17M or .08 per share before any special charges or credits for quarter 1. BRD likely had cash flow of $23M for the quarter plus an extra $5M in cash from the sale of warrants. Look for a big increase in cash or a paydown of debt during the quarter. After capital expenditures BRD likely took in an extra $13M in cash. At the CC they announced their intention to pay down debt this year by about $18M and they said that capital expenditures will drop next year.

Sorry, but I've turned very negative for the next year. USGIF had a special gain of $5.4M due to price adjustments as silver went from $27.50 on June 30 to $34.70 on September 30. Silver is now well below that and if it doesn't go above $34.70 there will be a price adjustment loss in quarter 4. Without the price adjustment they lost money in quarter 4 even before the special charges. Production in 2012 is 160,000 ounces below production in 2011. They sold 80,000 more ounces of silver in the quarter than they produced with a cash cost of $22. The cash cost of gold at Drumellon is over $1,100. They have 4.4M shares from warrants from Drumellon at .65 that are due to expire early next year. This will bring many new shares onto the market to be sold and will dilute. USA will have a very difficult time showing a pro0fit in quarter 4 unless silver goes much higher soon. Thjis is a very long term hold with much still to be proven. I sold 90% of my USGIF a few months ago and bought a stock that doubled since then. There are too many stocks with big production gains right now to wait a year to see if this will materialize.

625,000 X $34 = $21M + $2.5M in copper and lead revenues. We should be looking at third quarter revenues of about $23.5M from USA. RXE will probably add about $6.5M in revenues as they will only count half a quarter since they took over in mid quarter. They will also only count a half a quarter in expenses from RXE. Total revenues for the quarter should be about $30M and IMHO profits will be around $5M-6M pretax. I expect cash on hand of $22M as of September 30 and I expect cash to increase at the rate of $1M per month as long as silver is $34.

Good news from the September presentation. USA currently has $21M in cash on hand. That means they have held their own during the last two months when silver was down. With silver now $8 higher they will take in about $600,000 more per month in cash. If silver stays up we should see an increase in cash on hand at year end despite the Coeur expenditures.

I meant to say that production for the first half is forecast to be about 1.3M ounces so 600,000 ounces inj quarter 3 is conservative. It looks like 3rd quarter revenues could be around $35M. USGIF swhould be significantly profitabloe notwithstanding any special charges due to the merger.

600,000 ounces of silver X $33 = $19.8MK in silver revenue + about $2.5M in copper and lead revenue = $22.3M in USA revenue for quarter 3. Production for the second half is forecast RXE averaged about $13M in revenue for the first half of the year. Most of the silver produced in quarter 3 will be priced at the closing price on September 28 as there is a three month lag until the silver is settled.

I never have been able to figure out why people are so against issuing options at current market. There were only about 1M options issued. Do you want your management to care whether the price of the stock goes up or not. If manage4mkent owns 1M options at $2.23 do you think they will try to get the stock to $3 or to $1.50? Do you really think they care whether the stock goes up if they don't own any? The only way they care whether the stock goes up is if they own some. They now have the same interest in seeing the stock go up that you do and will make decisions based on trying to get a higher stock price. If you pay cash bonuses it costs you money. If you give options and the stock goes up you receive $ for those options if they get exercised and everybody wins.

Is RXE bleeding cash? As of March 31, 2012 RXE had $1.4M in cash and $8.4M in debt. During the 2nd quarter they purchased $330,000 worth of new land. On June 30, 2012 they had $3M in cash and $7.9M in debt. Is RXE bleeding cash? Another thing RXE brings is more trhan $5M in tax loss carryforwards that will save cash in the future.