RE: RE: GREAT NEWS!!!This may answer some of your questions. This was posted last August on the A..COM site. The post was never submitted to SLAM management, so no answer was forthcoming, but the results were predictable. This management team simply doesn't have what it takes to take this company to the next level. The best thing for shareholders would be for SXL to be bought out by a company that knows what their doing.
Note that last August the resource was estimated at CAD $1B, now it's less than half that amount. They spent $4M to cut the resource in half... smart move.
Shareholder Value
posted on Aug 07, 08 09:22PM
SLAM Management,
Well, here we are at .075 cents on a stock that should be much higher. The share price is clearly showing that the investment community does not believe there is a viable plan to pull the Nash Creek resource out of the ground, despite the deposit containing nearly CAD $1 billion of zinc, lead, and silver. Here are some good reasons why:
1. Lack of planning. We all know you have $2 million and plans to drill Nask Creek, Costigan, Fort Hope, etc., but after you have spent the money on drilling what does that leave you? Back to the market for further share dilution? That is not the only option, but since you have not said otherwise, that is what the market will assume. The investment community needs to see a long term plan, and one you stick to (not like your plan to build a ramp to get at the high grade zone, which you then cancelled and didn't tell anyone until after the fact).
2. Lack of focus. We all know SLAM has a lot of interesting properties, perhaps too many for a junior resource company. Trying to work all of them only means spreading yourself too thin, accomplishing a little bit everywhere instead of focusing on one property at a time. Why not option the other properties out to other companies and focus on Nash Creek? Or keep them in your back pocket for another day, once you start generating cash flow from Nash Creek? The resource isn't going to disappear if you ignore it a few years.
3. Poor management, or lack of communication, or both. We all know that Mike Taylor is a good geologist; look at the properties he has amassed for SLAM. However, a good geologist does not necessarily make a good business manager. To run a business you need to focus on the share price and maximizing shareholder value; other junior resource complanies are doing it, SLAM is not. Hard to get future financing when past financings have had dismal results for investors.
Hopefully SLAM has a long-term business plan for maximizing shareholder value, but the investment community just isn't seeing it, and frankly neither am I.
Management needs to seriously start looking at strategic alternatives to turn this company around, because at .075 cents there is major share dilution in our future, and that's not good for shareholders.
Please elaborate on your plans to maximize shareholder value.