Get lost RozelliIf you've got something constructive to say, then say it, otherwise go to hell.
I mention Arian frequently on here for one very good reason: it is an excellent way to measure the limitations of the SLX management.
Both companies are junior explorer-producers in Mexico, both are producing between 600,000 to 1m ounces per year, both have a minority shareholding by Sprott. Sprott has 16% of Arian. Do you think Sprott are liable to be taken in by a scam, you cretin Rozelli? There seem to be a lot of people on this board willing to defame Arian and its directors merely because they are showing up the SLX management for their p*ss-poor efforts.
Let me tell you what's going to happen this summer, Rozelli. Arian is going to overtake Silvermex in the size of its market cap, despite Arian having less ounces, less production and less in the bank. And let me tell you why: because yesterday the SLX IR spoke approvingly of the fair value in the SLX share price being below 75 cents, and the SLX board seem intent to talk down the stock, impair goodwill and so on, whilst yesterday XCap, through the endeavours of Jim Williams, put out an ebullient research note emphasising Arian's growth potential and imminent resource upgrades, and forecasting that the stock will rise from 39p to 141p.
Arian currently has JORCd up 42 million ounces of silver, plus base metal credits. This is a fraction of what SLX has got. Arian's resource upgrade will take them up past 100m probably, on the way to a long-standing 200+m target. Do you honestly prefer the SLX method, which is to continue being ineffective and oblique about their potential, stripping out future growth from their expectation of how the stock price should be performing? Do you honestly prefer a company that hasn't given one indication yet of how their 7,500m of 2011 drilling is going, while Arian has already drilled and released results from nearly 10,000m, with thousands more being lined up? If it's a scam to commission companies like XCap and Edison to write up research notes highlighting the company's potential, and then to circulate these widely through the investment community and media, then scam me up. Do you honestly go to bed at night thanking the Lord that you had the probity to invest in company which has a management that refuses to take all steps to promote itself, Rozelli you idiot?
Here's the Arian research note, Rozelli:
https://www.mediafire.com/?b3y1c8vdjgyvcwp
Who could have any reason to be upset if Silvermex commissioned a report like this highlighting its own potential? Except we don't have target ounces from this board, we don't have a target for resource updates, we don't even have any indication of how the drilling has gone, while AGQ have drilled and release more already this year than SLX will do in total.
Use your brain. Are we going to get a funding announcement this year for mine expansion? $50-100m of dilution perhaps, at 72 cents a share? If that happens, whose interests do you think your beloved board will have been working in? Yours, or those fantastic big money, big mining connections we all thought were such a great asset these old Silvermex people were bringing to the table. I don't want the SLX board to be recording impairments of goodwill, lowering the stock price for the benefit of their financing buddies in Toronto, I want them to be out with a bicycle pump all day long pumping up, scamming, talking up this stock for the benefit of its existing shareholders. As long as they are telling the truth and not lying, just like Arian are telling the truth and not lying, then hype away.
In reality, if Jim Williams wished to deflate the Arian stock price and tell his shareholders that 39p was a fair reflection of the ounces they have mined recently, then he could do that. Just like if the SLX board wished to bring into sharp definition the exploration potential and market it aggressively, whilst having external research organisations write up the company's prospects and set price targets, then they could do that. But they didn't. Arian did. And that's why Arian's market cap will exceed Silvermex's this summer. That's why Arian shareholders will hold more valuable paper in the market than Silvermex shareholders will.
And this is more than just bluster. It translates into action on the ground. Arian has drilled 10,000m like white lightning so far this year, they've got the results out, they've set up a mobile lab to get fresh results turned around in a matter of days, they're going to upgrade the resource in July to probably 80-120m ounces, and then with further drilling we'll get another upgrade at the end of the year.
Can you tell me with any clarity exactly when Silvermex are going to upgrade their resources? Can you give me any indication of what increased value Silvermex think this will coalesce as in their share price? No. Because they are complacent and have no urgency whatsoever to take the material action or to keep the market appraised, to inject expectation value into their stock price. Maybe they'll get to it in eighteen months time. Maybe this is why Hecla and Silver Standard were two of the least impressive performers as the silver bull market grew.
I will continue to mention Arian on this board, as a yardstick for the comparative failure of the current SLX management. At some point, the people on this board whose cognitive dissonance at the fact that Arian's management works in favour of its shareholders far more than Silvermex's does will come to the realisation that it is not Arian that will be scamming the market by performing well, it is Silvermex that will be scamming its shareholders by peforming poorly in comparison. Sorry, I mean heroically searching out fair value/ book value/ liquidation value.
So in summation: get lost, Rozelli, and take your pathetic sniping with you. Come back when you've got something constructive to contribute about how Silvermex is or is not performing. I will continue to highlight the comparative performance of Silvermex and Arian.