Look, if everyone wants to go through this hang-wringing exercise and the general attitude is focused on how the sky is falling, it is pointless to try and respond to it. But lets at least try and keep some form of rational thought in the process...

First off, the burn rate that everyone seems so concerned about is basically admin expenses related to keeping the offices open, paying salaries, and meeting the accounting requirements for the listing. That info is published in the financial statements and I suspect once the admin side of the merger is completed, involving closing some ECU offices and perhaps reducing the combined payroll, the burn rate will not amount to a large amount of money.

The rest of the cash that AUM has on the balance sheet is available for exploration and capital spending. It is discretionary. Long term plans are in place but they are subject to change as necessary to reflect the market reality as time goes on. I do not know what the world will look like in a year from now, and neither does anyone else on this forum, so to suggest it will take X number of shares to raise Y amount of money, and price in the absolute low estimates from a year of trading makes absolutely no sense. Or to assume AUM will not be able to raise money at all...? WTF? If anyone on this forum actually believes that is the market reality, you should sell out of everything right now. Why are you people even here, you should be in bunker somewhere counting how many cans of beans you have left to survive on.

We already know AUM has two operating mills. They were unable to make a profit under ECU even with higher metals prices because the mine workings were not being developed efficiently. It was about not having enough money to run the operation properly under ECU, and now that has been resolved through the merger. The metallurigical issues were improving under ECU, and now the combined management of AUM will probably crack that nut too. If I am right, that means the company is very close to being able to generate profitable operations and whatever cash flow can spin out of Velardena will contribute to funding other expenses.

The devleopment of a larger operation at Velardena is probably a year at least from the stage when the planning will be completed. This is the lowest capital spending part of the development plan. The total budget of the project is payable in stages. We already know how volatile this market is and a year from now the sentiment may be ragingly bullish. The metals may have put in many all-time highs along the way. The interest of a large, modern mine that is producing gold and silver could make AUM a leading stock and even a takeover target. Why get all your shorts in a knot trying to predict what the situation may be? How many on this forum correctly called for new highs in gold back in 2008 after that meltdown? I did BTW, but even I was not expecting $1600 in 2011 and here we are above that even with all the manipulation in this sector.

It is just as valid to assume a share price for AUM of $40 in a year, and calculate estimates for dilution based on that price level. Not to mention the listed warrants and options in the money that will be exercised along the way and contribute cash to the treasury... Not to mention cash flow from the existing mills... Not to mention possible transactions to vend non-core properties to other companies for cash along the way. Have any of the hysterical sky-is-falling crowd bothered to consider a potential debt transaction as a way to fund the mill, that would not involve much dilution at all?

The market stinks right now. This will pass. AUM is sitting on a mountain of cash and has many options in how to get where it is going. I do not see any benefit to predicting the end of the world.

cheers!

mike