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Re: brandemarcus post# 41

Thursday, 07/25/2013 12:06:52 AM

Thursday, July 25, 2013 12:06:52 AM

Post# of 88
Sunshine Silver or Hecla will probably eventually buy US silver, but both can afford to wait, especially Sunshine Silver.First just lok at what they have raised and spent to date- if USA silver became cheap enough they could probably find way to make cash offer but I believe Sunshine Silver will prefer to pay with paper , and paper that has a value higher after they start trading. Hecla cango after USA Silver any time, but they need tobe more aggressive to acquire it- would be great marketing plus for Hecla.

I read the posts you referred me too. Not really sure where they are coming from. For example they talk about labor relations. A bit of history- the Galena Mine always had some in the union, and Sunshine was unionized under Sunshine Mining Company.When Sterling took over, De Motte and Mclean had a very worker focused philosophy, and De Motte was very close to the workers.No union during Sterling years, and Sterling had no probem hiring the best workers from most mines.In fact De Motte even went out of his way to hire strong union types- he made famous agreement with one that if ever workers felt company didnt have their best interests at heart, he would personaly invite the union in. At the time ,USA Silver went all over Toronto trying to promote company, and explaining poor results from not being able to hire enough miners. Yet Sterling had almost zero per cent turnover, and had a waiting list of miners wanting to work there, at least until De Motte left in May 2008. Now Sunshine work force managed by your typical mine managers, competent, not sure where idea is that Galena labor-management culture would benefit current Sunshine workforce.

But the only company in Pacific Northwest Sterling couldnt hire best workers from was Hecla, which was and is considered blue chip company to work for.

So a bit odd the post indicating the Galena work force ( especially considering recent layoffs) would strengthen Sunshine Silver due to good labor-management relations.

Dont get me wrong, Galena Mine has some good potential in a rising silver market, and some synergies with the Sunshine.But it is not the easiest mine to generate a profit from or achieve sustained compound growth- something the last 20 years has shown.