Re: Golden Minerals is a great buy but so few stepping up
in response to
by
posted on
Feb 07, 2016 11:08AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
99921, gwr and others,
I fully agree with the value proposition of oz. in the ground, etc. reminded to us by gwr, as well as the important considerations listed by 99921 above.
I am still very concerned with what happens if the stock price stays below $0.29/sh in that period of time prior to the loan becoming due i Oct 2016. If shr price stays below $0.29, then "substantially more" shares will be owned by Sentient (potentially amounting to over 50% stock ownership of the Co. by Sentient).
Did anyone attend the stockholder meeting in person? Has the Co. discussed any actions or specifc plans they have for payment / partial repayment of the loan to Sentient (other than wait for improving AG prices in the future)?
If the company partially pays back a portion of the $5.5M in Oct 2016 then will Sentient not be able to convert to Co. stock that portion that is paid back? I certainly hope that is part of the Loan Agreement, but I can't find it spelled out in the loan documentation.
The leasing of the oxide facility is forecasted to bring in $5M/yr revenue. BOD / Mgmt should be taking additional actions to pay off all or part of the loan as it may take more time that we have for this loan situation for AG prices to increase to a level where mining operations can resume profitably. I understand that the Co. has ongoing expenses to pay also, but would think at least a portion of this loan could be paid back thereby not getting us into a situation where greater than 50% is owned by the largest shareholder.
I understand the positive things Sentient has done for the company over the years, but for me, this remains a very big risk that must be offset. I do think if this risk is managed successfully, then it's a great time to buy AUM.
Please let me know if anyone can help give me a better understanding of the above concerns - I really would like to convince myself to buy a little more at current prices!