Duluth Metals Ltd DULMF

Management versus a miracle

[materialsgirl]

Many of you are attaching too much importance to what a management team can do.  Management has no influence over the broad macro market, no influence over commodity prices, no influence over the geology and no influence over what Anto decides.

What will managment do now?   It is not as if they have a wide palette of options.   All they can do is scramble and explore and try to implement some way to raise capital.  The head winds are very strong.   Debt may be impossible without at least a 15% coupon which would create a new dilemma in a few years.  With $30m market cap DM would need 100% share dilution to raise enough short term money and much more later.

Here is the thing.  A new management team would accomplish little in my opinion.  What is needed is a miracle worker.  Without that it is best to stick with the current people.

What would I do?   My suggestion would be to create a new company that owns the properties outright.  Anto might get 60% of the shares in return for putting $15m into the treasury.  Then try to sell the company outright or look for a new joint venture partner.  This arrangement would be more attractive as the title would be clean.  Odds would be against it but it just might work.

Just my viewpoint

mat