TSXV:AUN.H - Post by User
Comment by
JonEcashon May 26, 2009 9:05pm
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Post# 16018359
RE: JonEcash..
RE: JonEcash..In terms of La Negra, I really don't know. They're are clearly better off than they were a few months ago when metals prices were lower, but we don't have a clear enough picture of the cost structure to really know. Their next quarterly financial statements and MD&A should provide some insight. I put a call into IR today and will report on what I hear back.
Like you, and many others here, I don't understand the trading with this one. All of this volume and clear accumulation/money flow going on, yet the stock price is down? I get that the Company has cash problems, just like most resource juniors. But unlike most juniors, these guys actually HAVE something. The property rights, operational experience, infrastructure and equipment, must easily dwarf the current market cap. It makes no sense. For instance, the share price is almost as low as it was in December 08, and yet the value of the silver in the ground for Shafter alone is like 50% higher! All the insiders (other than Berlanga) are still holding their shares too.
Maybe we're getting a little hammered b/c of our selling off of Rosario. I mean it was a $3M asset say (our purchase price), so that's almost 3 cents a share. But I thought it was good to get rid of an asset we could not afford to focus on, and get some much needed current cash flow in return. Plus we still have the opportunity to participate in some equity appreciation if Rosario ends up in production.
If the POS and other metals continue to climb as expected, and if management can weather the storm and secure a positive deal for Shafter then we should see multiples higher than here. Those are longer term developments, and I'm a longer-term investor. With it now getting into the summer months, who knows what will happen to this one in the short term. I'm not trying to be a pumper, just stating my thoughts. I did purchase another 30K shares at $0.095 yesterday.
GLTA.
J$