If the stock market tanks as many predict then demand for precious metals goes up (investments have to be made some place), prices of precious metals escalate and precious metal stocks take off. Personally I think that is what we have been witnessing--price of this stock something like 6 months ago was .04/share. Thanks goodness I did not sell
One of the issues to vote on in the proxy is the appointment of Price Waterhouse Coopers as the independent auditor. Apparently management has a very positive outlook as such a large auditing firm would not be invited unless big things are anticipated.
Last year's dismal earnings had to be because of some writeoff. They were operating cash flow positive for that year and every quarter since.
Debt has remained at about the same levels for the past quarters.
I subscribe to a Stansberry financial newsletter that recently said that "small" precious metal stocks are coiled and ready to spring up. If my memory is correct our company was on their recommended buy list several years ago. Obviously the recommendation did not pan out over the short run. Hopefully it will in the near future.
My positive reaction to the above is certainly tempered by the large unrealized losses I have incurred.
Now, let's have a real long overdue upward spike in the price of silver.
This is a stock that is nothing but pure speculation.
I am sitting on large losses (emphasis on large) but continue to hold.
With the United States' dismal finances coupled with world instability I have to believe there is going to be a massive flight of capital to precious metals. Gold and silver have withstood the test of time when it comes to their acceptance as money. I have read several books on the subject and am advised that silver consumption far exceeds silver production. I am truly puzzled as to why there has not been a significant upward pressure on the price of silver.
One has to be impressed with the resumes of management.
I initially got involved when the company (several merger ago) bought Drumlummon, a mine that has since been closed but continues to be maintained. I know some engineers who have worked at this sight and there is a lot left. So much left that I believe there were 12 separate properties around Drumlummon that were also acquired. Finally, a fellow who I occasionally golf with is the next door neighbor of our former governor's brother. He tells me the brother bought quite a bit of stock. This was a number of years ago and I have no idea as to whether he still owns it.
The company wanted to build a mill at the Drumlummon sight and Montana's environmental folks kicked around the application for an excessive amount of time. If anyone knows the status of this I would appreciate hearing.
This one is pure speculation but the potential for a perfect storm seems to exist. Sure hope so.