RE:RE:RE:RE:Demented IdiotsHey Sandy, you need to read the post again. Your reading comprehension is not very good. Also, take note of Southpen's very fine point about stockpiled concentrate.
"1. The $2200 cost/ounce only referrred to the very last quarter Druml. was operating, when the very rich Charley Vein played out and, without investing money the company didn't have in more exploration, they didn't have anything good to replace it just yet"
Really? You're saying that they didn't have a plan beyond a couple of months... You're saying they didn't have a clue where the good grades were to mine next.... Yup, once old Charley was panned out we better hope to heII that we bump into something? It would be hilarious if it wasn't so insulting to see that 30% of my USA shares were traded for that....no reserves......
"At the time of merger, however, Drum was probably producing gold somewhere around $1000/ounce."
Probably? Are you saying they didn't know? Is that what was used in the "Fairness Opinion?" They were probably producing somewhere around there? Wow...
"The accounting was very complicated, because the last results of RXE as an independent company, the March Q of 2012, it was still technically in "test mining" mode, where they don't calculate cost/ounce produced, "
Complicated? Test mining where they don't calculate costs? So the deal was cut where one side didn't even calculate costs? Just a WILD AZZ GUESS?
"and revenues are considered a offset against development expense."
I see...... they were still trying to develop DrumLemon into something. So we traded an established and well know operation, USA, for an operation that was in development and might never amount to anything..... USA was traded for something that was not proven......
"Yes, RXE still showed a loss that quarter, but that was after over $8MM in exploration."
Wait a second.... They spent 8 million bucks and didn't find anything? If they had, come the 4th quarter when good old Charley was spent, they would have just kept mining the good stuff, right? What you're saying is they spent 8 million bucks and didn't find anything worth mining, yet it was decided by 3 parties that it was good enough to trade for the real assets of USA..
"IOW, Druml. was probably fairly profitable when it was acquired."
Probably? I have zero confidence in your argument. They spent 8 million dollars on exploration and a few months later were mining at a cash cost of $2,200 an ounce.
"Oh, and it is not filled with water that can't be gotten out easily, has no environmental problems other than cleaning the water which is no big deal,"
Get serious dude, this is a problem.
"and some day is likely to be operating very profitably again."
Again, your argument has zero credibility.
"2. When gold and especially silver prices crashed a year ago, the combined company didn't have enough cash to run both mines. Closing Drum. was as much the fault of Galena's high costs under its old management and crashing silver prices as anything about Druml. itself."
If USA didn't have DrumLemon they would have weathered the storm much better and would not have had to do a MAJOR DILUTIVE FINANCING, which further devalued the already crushed USA share value. At $2,200 an ounce DrumLemon was closing down regardless of who owned it and that has absolutely ZIP to do with USA. You keep twisting the story and blaming the old USA management when the facts are plain and simple, DrumLemon was producing gold at $2,200 an ounce. DrumLemon was going bust with or without USA. That means USA shares were traded for a bankrupt destined company, IMHO.
"3. I am against all options to management too. I think the right way to incentify management of any company is cash bonuses based upon achievement of certain goals, with enough of a fudge factor so that managers don't drop the ball on non-bonus related performance just to focus on the bonus related targets. But that is a whole another discussion."
Well, it's nice to see that you've come to your senses, finally.... I was getting sick of listening to your previous nauseating garbage about options.
"4. The management that came with RXE is vastly better than what USA had. You think you could have gotten top notch management without giving them decent salaries or any options? Good luck."
You don't need to trade 30% of a HIGHLY VALUABLE property for a management team. That is utter garbage. New management can easily be had if there is a willingness to do so. It was done' with WDO last year and shareholders didn't have to give up 30% of their shares for it. What you do is spew obfuscatory propaganda that USA shareholders got this great management team and divert the talk away from the reality of trading their valuable USA shares for an uneconomic mine that was closed in short order. This is precisely why I believe you are part of the RXE insiders. This is VERY insulting to those people that took MASSIVE losses on this joke of a deal.
"5. The only person who could have predicted in June of 2012 that Drumlummon would be closed 9 months later would have had perfect ability to predict that gold and especailly silver prices were going to collapse,"
When the cash costs of DrumLemon are $2,200 it was never in the money and the drop in price of gold and silver had nothing to do with the imminent demise of RXE. Even at the price of gold and silver at that time DrumLemon was toast. You cannot obfuscate the facts with this diversionary nonsense.
"and also have X-Ray vision to know that the Charley Vein would play out when it did. Drum is a narrow vein mine, and they are notoriously hard to explore."
Dude, you just said they just spent 8 million bucks on exploration! There was no X-Ray vision required. The fact that it's a narrow vein mine is further evidence that the merger was a joke. No reserves..... and 8 million bucks worth of drilling that ended up with a 4th quarter cash cost of $2,200 an ounce.
"Hopefully you will check the facts and see I am right."
Yup, I checked. You are just spewing garbage based propaganda.
"If you go back to your daily garbage dump, you will affirm that you are indeed demented."
Not only are you not smart, you're really not that good at spewing propaganda.
"Thank you."
No problem. I have no issues exposing your infantile arguments for what they are....Garbage