GREY:VITFF - Post by User
Post by
StuntCoqon May 12, 2023 1:43pm
179 Views
Post# 35445833
Is Management Blowing Our Chances?
Is Management Blowing Our Chances?Today one of my biggest positions also released their Quaterlies. Silvercrest Metals. They have unreal grades, but the management of that company are Pros (they are a spin off from a previously successful sale) and it shows. There is a lot of contrast in the way the mines are managed between SIL and VCGX, and it is showing today.
But what are your thoughts?
I'm thinking these first couple years are vital to prove yourself, especially since we are low grade. In hindsight I'm thinking making moves to block Coeur was a mistake, but hey I was seeing those dollar signs at the time too. Coeur would have paid a premium at the time and the share price was much higher. John could have transitioned to Bayan and started to build that up for a sale. Other questions I have (and maybe people know on this board) were around the belt failure: What kinda of inspection and maintenance is done on the system? Are we waiting for failures or being proactive? Have we thought about risk mitigations for critical path items? Are they in place?
I'm thinking there are a couple positive outcomes here which is why I am currently holding:
1. VGCX gets their act together, we take a nice buyout from a midcap, ideally BYN shares are spun out or BYN is also bought.
2. VGCX tries to become a multi mine company, by buying and developping BYN (and it better be with free cash flow and as little debt as possible) and proving out LG's claims. Although this would be a cool story to be apart of, this is going to take time and very smart descision making. So the less likely option.