RE: Big PictureYes, TrueBull, the Silvermex metrics are all very good, yet the share price under performs. Why?
Silvermex was in effect taken over by the ashes of Genco. Genco owned the only producing mine, La Guitarra, upon which Silvermex now depends for cash flow. The Silvermex contribution was a bunch of good, but cash hungry, prospects. Original Genco shareholders took a majority of the shares. Silvermex contributed its name, quote and management.
Years ago Genco was a good story, a very old mine, La Guitarra, brought back into production; the share price did well. Then something went wrong. As I recollect, an investor built a large holding and began raising issues with management. This resulted in a proxy battle and ultimately the management lost. I do not know the issues, who was right and who wrong, but the mine was closed and anyone who had not sold out before the proxy battle lost their gains.
Who was this Genco shareholder; step up James Anderson. Now of course a major shareholder in Silvermex and evidently selling or redistributing part of his holdings. He is a director of Silvermex, but is not standing again at tomorrow's AGM in Vancouver.
According to Canadian Insider, he disposed of 1,000,000 on July 14 and another 7,000,000 on July 18. He has also been exercising his options.
Is this the cause of the share price weakness?
May be worth attending the AGM if you are in Vancouver!