When other gold/silver stocks rallied, AUMN either flat or even dropped, but when other stocks dropped, AUMN tanked..... Added to the wounds, the incompetent management raised money at the 52-weeks LOW.
Yes, they had great projects, yes, they have a lot of silver, but also yes, they have incompetent management.
Also, silver-equivalent counting is NOT good. If they used gold, well, maybe that is OK, but silver is expected to go with a greater rate than gold speed. If silver equivalent by using BASE metal is nonsense. the base metal will not go at the same speed as silver at all. But this is what AUMN management has done.
In the recession scenario, gold and silver can go higher due to money printing, but base metal may stay low due to low demand.
Forget about silver equivalent, AUMN management should just report SILVER. Once we take that into consideration, AUMN was overvalued when merged.
i have a limited tolerance for dilution but i also know it's a necessary evil to get from point A to point B. and if this latest round means Velardana ramps up even faster (that is the assumption i'm making) then i consider that a good thing.
i like the reasoning of this merger. there are risks and management has to step up and deliver, but i'm going to give them time to try and execute (i.e. too early for me to declare them incompetent)
i also, fwliw, don't think base metals will fair poorly in upcoming years. think the $1 area is the long term floor. ultimately every single commodity on earth has some monetary value. zinc/lead aren't going to the moon but i think they're headed to $2-$3 in coming years.
in short, i think investors are getting proper odds (and then some) at these prices.
I think it is obvious what is happening here. Sentient was if not mistaken a large ECU shareholder and they are doubling down on AUMN here in the price trough. I think with such a large ownership position they have a lot of leverage to be able to sell AUMN to a senior producer like AG CDE or PAAS...