Baker reflects on silver, Hecla's future
By: Dorothy Kosich
Posted: '30-DEC-04 06:00' GMT � Mineweb 1997-2004
However, Baker isn't inclined to have Hecla invest in junior mining companies. First, Hecla can't afford to make that investment. Secondly, "I have not seen that be terribly successful," Baker explained. "There have been a few examples where it has just about put companies under or has put them under."
ok so in Dec 04 not inclined to invest in juniors..
275 Million is not enough to take out a major
why do they need 275 Million?
In my opinion to line their pockets with warrants and options and a cheap price before a takeover.
Let's see now..
If they (Management and buds) pick up 10% of the warrants and options at 27 Million and
these go up in price 4 to 6 fold in price after a takeover is announced then they pocket hmmm
around 100 to 150 Million.
How many shares does Baker hold and how much would he make if the share price went up without holding new options and warrants.
I wonder, what did Mc do at Goldcorp that has shareholders suing him regarding options that he profited on after the Goldcorp recent acquisition?
Would this be similar, or identical?
I do not know for sure. Perhaps someone in the know could tell me and others who are shareholders on this board.
After all if we the shareholders are getting screwed it may be nice to know how and why.
It's all about making a buck. Does not matter if you have a million or a billion. GREED is the name of the game these days.
Hecla has a market cap of about 480 M and they have approval for a shelf offering of about 250 Million.
and that with gold and silver prices going up and acquisitions either unlikely according to Baker or costly according to recent stock prices.
WHY do they need 250 Million?
They increased exploration from what 6 to about 12 million in the last quarter. They have cash on hand.
Hmm.. something does not smell right to me.
Perhaps GG will takeover HL.. perhaps not.
Just the timing and amounts make me suspicous and also that there are few companies that GG would takeover other than HL at that price, the fact that HL is a US corporation, that it would reduce political risk in Venez., add silver to their holding which show more promise of huge profits should a breakout occur and other.
It isn't all about securing the best property...
It is ALL ABOUT making as much $$$$$$$ MONEY as you can.
How much would Management of GG make by a purchase of a good property at a high price as gold prices are not about to fall off a cliff anytime soon in my opinion.
Better to buy a property at a high price or to make a bundle on options and warrants on a takeover?
Do you think Management is always trying to do their utmost to ensure that shareholders do well?
They look out after no 1 and that isn't either you or me.
What happens to HL stock if US attacks Venezuela or Chavez has an unfortuate accident like a cigar that happens to explode in his face.
Range of $2 to $10 seem probable?
Any money to be made under such scenario's?
Sounds to me like HL has a bunch of corrupt losers for management and you are projecting their character traits onto GG. While GG/WHT has a visionary management team who have orchestrated one creative maneuver after another to increase the prospects/assets for GG and her shareholders. Win/Win management rather than rob the shareholders blind then move on to another comapny as is often the case today. If your executives are that way then sell your stock and move on.
If I were a shareholder with HL I would be estatic if GG sought to buy me out. ASide from the fact that your stock would likely move up very nicely you would end up with new management who have consistantlky built value for their shareholders. For that matter over half the PM companies out there would benefit from being taking over by a management team as dynamic as those found at GG.
On the other hand a major part of how GG got to be where it is today is thru the discrimination of their management team by only making moves that were accreative to the company multiple fashions with an aversion to potential political or environmental boobytraps. But also with a keen eye for value . . . oz's in the ground . . . synergies with GG current holdings, management, mills etc
I don't see GG going after your company, No Thanks. (Nor any of the other companies you have listed.) Is that your agenda posting about HL on this GG site? You're wasting your time.
Venezuala is about as a politically volitile environ as one could wish for outside of Cuba. I hope GG is not considering buying HL, I'd rather they invest in Argentine bonds. Here's hopen Chavez eventually gets exorsised, and GG invests in a gold mine like Hope Bay in Nanuvat in the Canadian Artic, where Caribou are the main concern and not some Utopian vision of a workers' paradise fighting against the omniscent old Uncle Sam.
It would seem to me that, with the extreme level of political risk that Venezuela poses, Ian Telfer and the rest of the brain trust at Goldcorp would be perfectly nuts to take a second look at HL.
Yes, HL has underground mining expertise, but GG seems to be quite blessed in that regard. And, yes,the Venezuelan properties and La Comorra may have gold, but what guarantees are there that El Presidente Chavez would let them keep mining? HL has already had its offices entered and books "looked at" by the government goons.
And there's also the Chinese angle. Chavez and the Chinese may like nothing more than to give the finger to the US by taking a resource property away from a US company after the CNOOC fiasco. KRY may also be in that pot as well.
There's also the fact that Thomas Fudge, Hecla's vp-operations left the company effective Aug. 1. Was his ethical nature too offended by what he sees coming? It's not that he wasn't competent.
Telfer and GG ought to run and not walk away from this half-baked Hecla idea if they have brains at all.