RE:RE:Summary of the Global Economic CrisisHey LGreen,
I think lack of regular updates (to the market) from the new management team hasn`t helped during difficult times.
A share price of $.045 is absolutely pathetic for a company like Northair, with a long-term silver asset like La Cigarra - where everyone knows that the long-term (managed/controlled/manipulated) silver paper price will eventually be overwhelmed by the physical market. The price action is going to be similar to 2008. Back then, the paper silver price was hammered down from around $19 to $8. That action overwhelmed the physical market and resulted in massive shortages in physical silver. It resulted in (some cases) physical prices being doubled the paper spot prices (I think), and, in some cases, backlogged physical silver orders being extended out for months.
I think each week we are getting a bit closer to a 2008 situation. There are all kinds of reports of how difficult it is for wholesalers to get hold of physical silver product. Mine supply appears to be decreasing, especially now, after 4-5 years of severe price suppression. Most companies have been selling silver for below the replacement cost of production (and a large number of companies likely even below the basic cost of production). Likely, a number of companies have been surviving through high grading deposits, which causes long-term destruction of deposits.
About 50 - 70% of silver production comes from base metal mines. Base metal companies have been slaughtered due to heavy global deflationary pressures. Even massive base metal companies like Freeport McMoran and BHP Billiton are being squeezed. This will lead to significant base metal mine suspensions/closures. As a result, meaningful supply of silver will be removed from the market as this situation develops.
Physical demand is very sprong, especially in unexpected places like India - both the known market and the black market (due to import taxes placed on gold the last few years).
With regards to Northair, my guess is that they are watching cash position very closely in difficult times.
Length of permitting time is a concern, but it`s not really a big concern for me as yet. I say that due to Northair already having a history of exploring in the area, and having a good relationship with the locals. Also, the general area has a rich mining history. In addition, it is a cattle/ranch area, as oppose to a crowded area with large communities. Mexico does have a number of areas which are restricted to wildlife only. Best I can tell, this is not one of those restricted areas.
With regards to share price, it`s difficult to know what the share price will be at $20 silver. You would hope it would be at least $.10, which it had been (mostly) until this year.
Aside from delay in permit and efforts to conserve cash (which was around $3.2 million in July based on the latest Corp Presentation), I think some of the slowness maybe has to do with them seeing if they can find another small company to merge with, maybe another depressed company but with a gold/copper deposit and access to some cash. My guess is that this is not set in stone initiative, but likely them just kicking the tires to see if they could find something accretive to our current situation. From pg. 20 of the (July) Corp Presentation:
``STRATEGIC GOALS FOR H2 2015``
``PREPARE FOR PHASE 4 DRILLING AT LA CIGARRA:
•Step out drilling planned to test new targets uncovered by AIR MAG survey;
•Phase 3 Permitting underway for drilling severalareas.
ASSESS M&A OPPORTUNITIES FOR NORTHAIR:
•Strengthen Northair’s cash position;
•Lower overall G&A costs while adding to a strategic mineral database;
• Diversify into other commodities such as gold, copper and zinc``