Replies to post #18059 on Value Microcaps Junior Miners

[GoldenKnight]

And in case you weren't able to read between the lines. I bring up SMC because based on your "All you need to know" analysis, would someone have bought SMC .. given it's reverse split, management blunders between Kerry Knoll and Tagliamonte, land slide/destruction in Costa Rica, hemmoraging of share price, etc.?

A resounding NO. Meanwhile, some of us did the work and knew what they had.

The QR mill/mine was operational until 2008, i.e. it's in very good shape. What is $80 million of recent construction/development worth these days esp. in this gold environment? BGM has hired a contractor to begin operating the mine...so that mitigates some of the operational risk. Assuming they have some of the old workers of the QR mill, they should be in good shape to pour gold. What's that worth in this environment, especially for a company only valued at $30 million?

And who cares if gold tests $1,000-$1,024? That only makes the risk/reward a no-brainer in our favor and once again I'll crank up the risk.

-GoldenKnight

[cl001]

OK, enough of arguing here. Don't take any disagreements to the personal level. Both of you are respected members of the board, let's try to discuss it in a gentleman way.
I talked to the CEO briefly and am thinking to talk to him again. It is finishing up the financing now. Post financing they will have about 50 million shares outstanding, 60 million fully diluted. The market cap ~50million is undervalued for a 50K relatively high cost producer as long as gold stays above 1000.
What are the risks, do they have a track record to expand beyond 50K? What make you believe the current financing will be enough to put them into production and cashflow positive?

[Lone Clone]

The most important aspect of any junior mining company is its management, more so than the quality of their properties. A good promoter can make you money from worthless properties, while management that is incompetent or self-serving and greedy can keep you from making money on the best properties to be found.

The management of WYG/BGM has for over a decade indicated it has no respect for shareholders. Maybe this has suddenly changed but I think it is important for any prospective investors in the company to know this history.

As I said before, you can make money with companies like BGM but be very very careful and time your buys and sells with the promotional cycles.

My posts are generally short because years of writing and editing, including stints as a professional, have taught me that in terms of communication, the fewer the words the better.

(BTW, I had not noticed that you are the same guy pumping the Mayan stuff.)

LC