Re: Hopefully Coach doesn't mind me posting this >>> Coach
in response to
by
posted on
Apr 17, 2009 06:28AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Next to the company being in possesion of a huge resource your following paragraph defines the next most important aspect of the company imo:
"My expectation is that within a quarter we will find out that ECU is able to not only pay down this debt, but earn enough profits to fund future exploration work. I think the company is capable of improving their balance sheet from here on based on internal cash flow generation, and may not have to TAP THE MARKET again to secure sustainable income from operations."
(Capital letters for emphasis.)
The financial self sufficiency is that second aspect.
These two aspects define as to whether one should invest in this company thanks to the the second mill and it's effect. This mill will provide positive cash flow and tied to the self sufficiency I would classify as perhaps the third feature of the company while management decisions as fourth. No need to go further.
For the record, I am dissatisfied with the warrant issue and the resultant effect on share price but the possibilities presented as a result of the second mill more than offset that dissatisfaction, hence I still say great management.
In addition, I think there is too much emphasis placed on day to day variations of silver and gold. You all know that these prices are manipuleted to no end. That can not be sustained forever, so we should concentrate on as to when that day will come where the manipulators spend themselves out and a whip lash in price occurs (i.e. a revolution).
Thanks Mike for another great posting.