RE: Digger -- what's your take on this??
Kewl2...
First of all the standstill agreement is set to expire on November 22, 2010.
You can bet that a new agreement or a new issue of shares or both will be worked out long before that date.
Lakeshore will need additional funding before the end of the year. There are several ways they can go about this, but the manner in which they speak about Hochschild both as a financial supporter and a narrow vein miner with a lot of valuable experience and knowledge, they will try to work out a deal with them first. Anything could happen. However, it is very important that they keep control of this little gem!
The NI 43-101 for the Bell Creek Complex will be completed in the fourth quarter of 2010, there is a good chance that it will be completed before the expiry of the standstill agreement. Having said this, all we basically need is more confirmation of those amazing hits at Bell Creek...drill...drill and drill, the NI 43-101 is just formality and it will help establish a future Mine Plan for Bell Creek which more than likely will include a new headframe and shaft.
What I think the market is worried about is the pricing for the new share issue and there will be one. Hochschild's share price is getting hammered and I believe the reason behind this is the new debt issue and/or share issue that is being worked out as we speak. They will raise at least 100-150 million dollars in my opinion. If we use the last share issue to Hochschild as a reference, namely, $4.43 per share, I do not see how LSG could sell the next offering lower than this price. The market is most definitely concerned about this over-hang, but at the same time they are playing games and accumulating stock...the major market players that is.
Please, try not to worry...they will let this stock loose soon! There is a lot of money to be made here and they know it. They will just let the "little guy and gal" squirm a bit and try to get their shares.
The primary goal of management is to protect their interests and that of ours as shareholders. What we are dealing with is a trust issue. If you trust management as I do, you will stick around and be rewarded by their efforts. We just have to look at what they have done and in such a short period of time. It is truly amazing! Just stop and think about it!
They have four mines on the go and what I believe will happen is that the down gap in the share price will quickly be filled and it will do a lot of catching up in the very near future. This event will happen quickly...all it takes is a handful of the major players to get it started...the rest will follow...as the fear sets in on the possibility of losing out on the upside.
Tony Makuch mentioned yesterday at the Annual Meeting that in his opinion:
"I believe that we are looking at 15 million ounces".....these are his own words!
Do you think he is about to let this go? I think not!
His yearly salary has now been moved up to $500,000.00 with bonus options that could see him make much, much more! He is not about to lose this meal ticket!
He must have the 10,000 ounces per month by the end of the year! I believe that their target of 65,000 ounces for this year is going to be very, very difficult to achieve. All it would take is down time of about 1 to 2 weeks to ruin these plans...they are very aggressive!
However, he must have the 10,000 ounces in December 2010...if they miss...the market will punish the stock! Even if Makuch has to go underground and pick it off the walls...he must get the 10,000 ounces...his creditability and that of his employee's is on the line!
Digger144
P.S. Try to be patient...we will not have to wait long!