RE: Cerro Dolores depositNew producing mines are often dogs until they get proved up. Take for example AUN, ADA, SAM - they all have similar curves. Stocks get promoted at acquisition, financing goes through in the form of share issue, people who made money sell the shares and those that bought at the high price just look at their SP dwindle.
It is not until the financials start showing positive numbers that share holders return. Most one time acquisition and work up costs have now appeared. Now the price of gold make these companies more attractive because they are producing at the time the price of gold is high and lucrative. Yes they leveraged some of their production but not all of it. When they got issued their loan they had to leverage it - a requirement from the bank. 9.88 million dollars is outstanding - they paid 3 million dollars early. Now out of 35,000 oz gold 13,200 yr is leveraged. By -product credits are not leveraged. The goal of the company is to acquire another property but who knows when.
Investor relations they are working at improving. I got phoned yesterday by a girl who was just 3 days in the job. She has been hired to work with the existing PR guy. Obviously the company sees a flaw and they are working at improving it.
Interest in the company may be higher than you think. People have been waiting for the company to advance to a certain level. That is what I did - bought in before the acquisition - stayed for a certain length of time and came back when I thought the company would do better. I also looked at - as the economy news went worse I wanted to be involved in producers. This is a cheap producer and at these prices - most gold producers have a chance of getting a good start. Explorers are fine - producers can get going and as they get more confident - and money flows better - acquisitions and exploration can come. Just my opinion.