RE: RE: RE: reverse split? Sorry Fraser et al. This was discussed with much fervor and fisticuffs merely a month ago.... but some people have just arrived to our board.
The board has people supporting both sides of the argument but I would say most are against it. The only argument for it is to get to a major board like the NYSE. Bottom line is really more about market cap.
So with much hesitation to go back to this discussion... if hypothetically you rolled back to 110 million shares all that would happen is less shares, less float and the same market cap. There really is 0 need to go to a larger exchange at this point because we already have great volumes. It is interesting to note that a few weeks ago there was a U.S. holiday while the TSX was open and the volume was insanely tiny. I think management is far less tempted towards further dilution with our present shares outstanding. It would be waaay too easy for Lenic and the boys to contemplate further dilution if we were worth $4. They'd simply sell another 50 million shares, buy a piece of dirt and our share price would stay the same or go down.
As others have pointed out extremely well in the past couple weeks.....if the current potential between Shafter and La Negra is only 1/4 to 1/3 proven up.... why buy more? You end up diluting your expertise and things inevitably go wrong. Lets keep Mr. Megaw in one spot! Kinda like a family restaurant that decides to open more locations and falls apart because they can't train their staff properly.
We are far better off with AUN being able to focus on the task at hand... get AUN up to 10 million oz production as silver & gold bang up and they can do whatever they want after the rest of us start to feather our way out at $6,7,8,9 and $10 bucks. It's the little companies that go parabolic. The next run up in the price of silver is more likely to see a smaller company like Aurcana reach $10, than to see a company like Silvercorp get to $60.
Once they get AUN on the TSX that will be more than enough exposure to get AUN to $10 should silver ever reach $50 and AUN is producing 8 mil oz +
glta