RE: RE: I said last summer 40 cents"Kruzer70: The SWN game plan all along is prove up the necessary resources to support a large scale mine and commensurate infrastructure, and then let a partner buy a strategic 20-30% piece.Step 1 is prove up the deposit as efficiently as you can and as quickly as you can. This theory , of course, holds as long as the sp grows somewhat along with the growing and developing value of the deposit, as one would normally expect for Expl&Dev mining companies. Thats what they do. There has never been an inference that SWN would have to come up with the money to go it alone or take on the job of getting it out of the ground. Harlan has stated all along in virtually every presentation he has made that he needs a partner.Some investors were actually looking for a complete take out-after some sp growth of course.
So yes the SWN game plan is spend the money to prove up the deposit for someone else. Kruzer, you seem critical of that, don't know why."
I'm not critical of the concept of JVs. Indeed JVs are one of the 2 most common exit strategies for juniors developing a resource (the other being an outright buy out). I'm critical of how the 'game plan' has been carried out. Look at it from the point of a potential partner. Here is this company sitting with an attractive deposit running out of cash and crippled in its ability to raise more. Why would you pay up now when you can wait until things get truely desperate for the Jr or they simply run out of funding. There is more to this game than finding a deposit.
My complaint about managment is that they've focused completely on defining the resource without any thought towards perserving shareholder value let alone growing it.
At best this is due to incompetence or at worst an active disdain for shareholder with a view that they are only there as a source of funding.
Nopoo provided an excellent example of HM's disregard/disloyalty to current shareholders when he related his phone conversation with HM regarding YZC. His solution to the massive float is to have a rollback to get the price above $2.00 to attract more shareholders. This will not help current share holders in the lest. In fact, most of the time it is harmfull.
"And Kruzer, I am a shareholder and believe me I think I understand what shareholder value is-and what creates/destroys it."
I'm sure you think you do Joe and I'll give you the benefit of the doubt.
"And don't forget to go and deliver your lecture to Novagold Directors who stated "NovaGold strongly believes that exploration success is one of the best ways to create shareholder value,..."
Sure Joe, first explain to me how NG is a good parallel to this situation. Once again the bulls on this board try to draw some sort of superfical comparison to a mining development success story. (wasn't it NDM last year). Fist tell me about NG. What is their fund raising history? How does it compare with SWN? Are they a single deposit story?