RE: Fiona responseNo doubt about it, that was a very poorly worded response. Fiona's boss should be talking to her Monday morning. For a long time. In an unpleasant tone. If this is a taste of things to come we should be looking for a new pr person.
Now let's look at what she said, not what you immediately read. She did NOT say "We are fairly valued at $.72". When you put something inside quote marks, SIMP, you are claiming that the other person actually said exactly those words, and she did not.
She said: "we believe we are being fairly valued in the market for what we have produced thus far."
"What we have produced thus far" is a $40 million dollar quarterly loss, and a production rate of a half a million ounces per year. What is a fair market value for a company that produces $5 million of product per quarter and loses net $40 million per quarter? If the market is valuing us based on "what we have produced thus far", our stock is not fairly priced, it is over priced by a wide margin.
The best interpretation I can put on this note is that our management thinks that the market is valuing this stock as a stable silver producer, rather than an explorer/startup. That would explain our current low share price. Goldminerpulse, for instance, bases it's valuation strictly on resources (i.e. as an explorer). Warren Buffet would base his valuation on cash flows, profit margins, balance sheets, etc. Perhaps our management thinks the market is valuing us using the latter model, "based on what we have produced thus far". That would give them an understanding of why we're priced where we are, and good reason to believe that the share price will move ahead nicely as they complete their plans.
Fiona, who know all this, was in a rush to get home for the weekend, and summed it up in one unfortunately worded sentence that gave completely the wrong impression, threw in a couple of links, and ran off to her yoga class. That's the best interpretation.
The worst interpretation that I can put on this note is the one that seems to be current here - we have management that thinks we're priced properly. If that is the case, we should all sell right now, because Sprott would also be aware of that, and he'll be dumping as soon as he can - which would be next week.