Re: News!!
in response to
by
posted on
Jul 13, 2010 01:56PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Well said Coach!
I have had a number of discussions about ECU and have come to a few conclusions.
- the purchase of the mill was a necessary evil because we couldn't keep going to the market for money as it was killing us. The problem was that it stopped ECU in its' tracks because everything was now concentrated on the mill and maximizing production. There is little threat that investors will miss out on a big rise In SP as there is no exploration. Pending drill results has probably been the biggest source of speculative buying in this stock's history.
- allthough the debt doesn't bother me in the least, for many investors it seems to be a point of contention. I think that they have to deal with it somehow. If the gold concentrate sales and current production can produce enough excess cash I think they should pay down some of the debt. If they would rather keep a cash position (which is also highly desireable) then they need to figure out another way to deal with the debt...possibly with forward sales of concentrate.
- they need to get the feasability study completeed so we can see the options that are available for expansion. Personally I would rather see them focus their time and increasing cash position on exploration, but options to build a bigger company need to be explored.
- ECU has to get back to drilling and proving up this Billion-plus ounce silver deposit. Imo that will be the key to growing the company. Not only will it generate some excitement for investors in the company , but it will prove up a unique and very large resource.
- which brings me to my final conclusion...and that is that once the report is out, ECU needs to make some decisions and give this company a direction. I would rather they go big or go home. Decide to build a 5000tpd mill and do whatever it takes to make it happen.
ECU has done some very good things to become cash-flow positive. Now they need to either find a partner to go big or drill this up like swiss cheese and sell it off.