RE:RE:RE:RE:Galane Sells Its Mupane PropertyTree2tree wrote: This company has proven over and over that they don't know how to make money from mining (while the insiders continue to make a good living). Why investors continue to give them the benefit of the doubt is beyond me.
What do you mean thay don't know how to make money for mining? Mupane has been operating profitably for some years (at least before covid and flood problems), and Galaxy has just turned positive. And do you mean insiders are milking investors? AFAIK there hadn't been a PP for years before the aquisition of the Summit mine.
Sure, both Ravi and Nick seem to have been overly optimistic in interviews, and they've made some decisions I haven't liked. I think both the PP for Summit (way below where the stock had been trading then) and later the forced conversion of debt (at 15 cents) contributed to lower share price. And based on what they have said, I would have thought Mupane would generate cash for some time yet (including the roughly 100 kOz in tailings they were supposed to process at an AISC of around $1000/oz). And also the progress at Galaxy has been slower than I would have expected based on interviews, though covid could be to blame for that.
That said, I think the sale of Mupane is probably a good decision, as it seems like they'll rid themselves of a good amount of debt and they would probably have had trouble making a profit from it in the coming years anyway. Galaxy looks like it will become a good mine, so it is probably wise to focus on that.
And I continue to give them the benefit of the doubt because I believe the current market cap does not reflect the company's assets. I think the main reason for this is that it is a "show me, don't tell me"-story. They need to prove they can deliver on their promises, and I believe management is capable of making both Galaxy and Summit very profitable mines. When this happens, share price will go way higher than where it is now. Ravi and Nick seem like decent and honest (though overly optimistic) people to me. They turned Mupane into a profitable mine for some years and they have been making steady progress at Galaxy.