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Golden Minerals Company Message Board

  • armatima armatima Jan 10, 2012 12:52 PM Flag

    Prior & after ECU merger value??

    Do you think the managers are stupid to pay 310 Million to add ECU to their portfolio and after the merger the combined company worth less than 310 million??

    Something is not right here or I may not have access to some information. Please advise if you know anything. Thanks,

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    • ECU at one time a few years ago had a market cap of $1B by itself. AUMN did a great job aquiring it.

      El Quevar looks far superior to the Orko La Preciosa that PAAS has spent big money on, implying far more than La Preciosa's 150M oz. PAAS has committed as much to that project as AUMN's entire market value.

      To have both Velardenas and El Quevar at only a $300M market cap is quite a feat. People don't even recognize that they have a lot more secondary and tertiary properties that are pretty decent and probably worth something. Zacatecas in Mexico and then they have exploration packages littered across South America. I would guess if AUMN was just a pure exploration play and didn't even have their 2 key assets, it could still support a $100-175M market value.

      Nice to see the second 15-16% pop in 2 weeks. My decision to bolster at 5-6 is looking like not a bad idea. This will probably trade down tomorrow and retest mid 6s and then set up for 8s.

      Gold can add on another $50-100 easy and silver can retest $34 or $37 before the momentum may change.

      No doubt shorts need to cover. Shorting a silver company with only 35M shares issued at a major multiyear low is not a plan for success.

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