RE: RE: RE: RE: RE: market reacted badlyI talked to the company today and they indicated news regarding the financing would be out in the next 2 days. They seem to realize the problems they've created doing it this way [especially in a dropping market] and are considering alternatives, but obviously couldn't say more.
Yes, at this moment they don't have to do a financing but they have projects that would make USA much more productive. It's too bad silver hasn't gone to 15 bucks and stayed there. USA makes $200,000 a month for every dollar over 11 buck silver. So, as long as silver doesn't slide they're okay. However, if they put some money into a few projects their monthly production will most likely go WAY up. So, just exactly what should they do? If the price of silver drops to 9 bucks then USA will not look too good and then having done that work will have probably saved their azz because they would most likely still be making money. Of course if the price of silver goes up they can pay for the upgrades with cash flow and then USA will REALLY be shining. Tough call to make when you're at the top.............Does silver go to 9 bucks or does it go to 15 bucks in the next year?
This management team has done a superb job in turning the company around and rest assured they don't want to dilute the shareholders. Unfortunately, they have to make decisions now based on factors they cannot control. The best case scenario is that silver goes to 20 bucks and beyond because if that happens USA will do the upgrades with cash flow and the company will then be making serious cash. Of course the share price will also make a monstrous move. The worst case scenario is if they don't do the upgrades and silver drops to 9 bucks or lower. Then the company is in serious trouble. USA management is doing their best in a tough market..........