Welcome To The Golden Minerals HUB On AGORACOM

Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

Free
Message: The one thing still confusing me

Re: The one thing still confusing me

posted on Jan 27, 2009 02:18PM

I haven't looked into it lately but I am under the impression that the senior management of ECU have substantial positions in the stock. I would tend to give them the benefit of the doubt here and make several assumptions. I doubt that they would make deals either to borrow money, sell equity or buy a mill at terms that they did not feel were the best available at the time. I would assume that buying this existing equipment that is so close to the ECU operation would be a very unique opportunity for ECU in all respects. My train of thought here is that they made the best deal available to them under the circumstances with the intention of generating income as quickly as possible and at the lowest capital cost. Had they not taken advantage of this situation there is a good possibility they would have been critcized for not doing so and were thus unprepared to produce if and when the silver price rises. Managing requires making tough decisions under trying circumstances. It will be interesting to look back on this decision in six months or a year - my guess is we will be happy it was taken.

Share
New Message
Please login to post a reply