TSXV:AUN.H - Post by User
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Premier1on Sep 26, 2012 12:13pm
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Post# 20416199
RE: RE: Reverse split premature
RE: RE: Reverse split premature "I see no reason for a split and have personally lobbied for a buy back"
Are you crazy? The day Aurcana announces a buy-back is the day I sell all my shares in Aurcana. A buy back is an indication that the company doesn't know how else to deploy capital. Aurcana is a mining company - they should always be in growth mode of some sort.
The reason I bought in a couple years ago is because of Lenic - he doesn't give a care about optics - he is results oriented. Yes - he diluted the company. He had to to get results. The tipping point for me to get in was when reading through a report and noticed that although they had low reserves at La Neg - they were pulling almost 90% of their silver from non-compliant resources (silver that they did not officially have). A lightbulb went off - every other small-cap resource company seems to focus on increasing their resource - it's good from an optics perspective but results in a company being able to say that they have lots of resources but we can't afford to mine it.
Lenic knew a long time ago that La Neg had a huge resource but instead, with their capital situation as it was, chose to mine it and make money instead of proving it and losing money. It was only when they started making money and had Shafter under way did they start getting serious about proving their resources. Lenic may not speak English well, he may be short and not confidence-inspiring just by looking at him but he is smart and results oriented. Optics is secondary. I invested in Lenic - not Aurcana. Lenic will never do a buy-back. I'd rather see a split than a buy-back. \
Use Aurcana's capital for GROWTH! (so that I can retire in a few years :) )
Premier