Out for now, but may come back!As mentioned in my last post here, i've sold my whole position in Silver Sprout some time ago. So i am totally out for now, but will consider to come back IF certain conditions by the company are met AND if the general market sentiment & silver prices improve. Note carefully here i said Silver prices and NOT gold! Just a few notes before i take my leavev here.
First, even though the company is a huge ongoing dumpster fire when it comes to mgmt, i'll give them points for at least trying to get some RESULUTION to Pino, as noted by the news release today. Though nothing has really changed on that file, better to at the very least commit somekind of effort to find a mutual beneficial solution rather than sitting on your hands hoping one comes from above. So points to SSE for that.
Also, some folks here MIGHT think SSE is being cheap or incompetent or both for not getting an agreement with the owner on this asset. Though i personally could find many examples of them being "incompetent" on the mgmt of this company on other areas, i really believe they "tried" their best to get a fair agreement for Pino for both parties.........without too much commitment or risk on their part. Imo, i think SSE is being cautious here by not giving the family farm away for something that "COULD" possibly not reach their expectations. This type of carefull approach ONLY comes with experience gathered over many years. Well, at least those 25 wasted years of non productive time finally came useful here for something. So more points for that too.
Like i've been saying for ever on this board, IF they can get an agreement for PIno IT WILL be a game changer for the company imo. Forget about all those other useless shi$$y properties they picked up for peanuts since the Pino debacle started. They were cheap for a reason because it was nothing but worthless dirt..........AND trees! If they can secure Pino for the long term, it will definitely entice me to come back.......with a few other adjustments of course. mand talking about other changes, this brings me "conditions to be met" scenario that the company MUST make to be viable for investors long term.
First, the company needs a lot working cap or MONEY to move forward! All they've been doing up to now if borrowing from themselves. IF they can get some serious folks or VC funds onboard with them, then this will be another net positive for the company and make them more attractive to investors. For this to happen though, they will need to do some crucial re-organization within the company, both personelle & financial. I will not speak on the mgmt front but for finances, it is simple. Since the company desperately needs cash to schedule & budget serious drilling programmes, they need to borrow lots. To borrow though, it only has one single option........an equity raise. As the comany is currently & severley over diluted with o/s exceeding 200M+ & trading at barely a nickel, they will need to consolidate share capital at least 5 to 1 for this to work. Once that is over & done, they can go ahead and lobby some VC funds to take a risk in their operations with a decent Private placement.
If they can manage to attain ALL these steps mentioned above, i will definitely come back in a hurry. But until then, i will remain on the sidelines as neither the company's current stauts or the precious metals market justifies me (or anyone really) doing so. Imo, the first step is the most critical one, securing Pino Del Plata. Nothing good will come if they can do even that. As i know the mgmt of this company "knows about & reads" this board. I will give them some final advice. Since Au & Ag prices are currently depressed, it may give the "difficult to deal with & greedy" owners of Pino some incentive to deal fairly with SSE. BUT i advise to act quickly as i don't believe Au & AG (especially AG) will remain at these low levels much longer. By my estimations you may have until the first half on this year, after that you better get on your knees and say some prayers because once they take off and you still haven't secured a deal, you might as well just write off Pino for good. Because if you can't get a deal when assets are unwanted & not in high demand, you will never get a fair one when they will be. Just some wise & sage advice from a seasoned investor..........
Good luck & God speed