Here are some facts and personal reflections of mine after speaking with Jerry Danni this morning:

1. The market cap is approximately $160MM. Excluding $54MM cash, it lowers the value of the operating company to $106MM. (In 2006, when the market rewarded miners for in-ground silver of 2-3/oz., ECU's market cap alone was nearly $1 Billion.)

2. Production and revenue should increase quarter/quarter for the forseeable future.

3. Valardena should be cash flow positive by Q1 '13, if not sooner (late Q4 '12)

4. The entire company should be cash flow positive in 1H '13. When the company reaches this milestone, I believe it will provide a desperately-needed very positive psychological boost to the stock--something that has been missing since the merger.

5. Production, which is currently 500 tpd will incrementally increase to 850 tpd in Q3 '13.

6. IMO, the everpresent algo trading is 75% of the pressure on AUMN's price. I don't believe the selling pressure is related to long liquidation by institutions, and only a little related to retail selling. Why some entity has singled-out AUMN to instill pressure at this price level is hard to figure. Yet, it must ultimately be covered when upward momentum develops.

7. Given the fact that in 2 years, production will increase to 1150 tpd providing 4 million silver equivalent ounces or $120MM cash flow (at $30 silver), this company is trading at a future 1:1 times cash flow (conservatively). This is a ridiculous valuation and should be trading at closer to 5-8 X cash flow.

8. We should receive additional analytical coverage in 2013.

9. I remain frustrated but patient, because anyone with the belief that metal prices will continue to rise, knows that this stock's valuation is absurd.

Silverbull50