Elgin Mining Inc ELGMF

Nobody's interested anymore

[the_ocotillo]

It seems like Elgin has fallen off everyone's radar. I have been thinking about buying here, but I don't know. There are a slew of cheap gold mining companies right now. And Elgin doesn't really have anything to set themselves apart. It's priced very cheaply right now, the EV must still be below $30m. And they still are cash flow positive with current gold pricing. But the merger diluted the share count while leaving the production profile unchanged. And with the merger came increased GA costs. Is Downey really worth $700,000 cash annually plus options and deferred shares to run a gold mining company this size? With the increased GA costs there isn't much cash left for Elgin to do anything else. And in regards to cost cutting, I find the company “cost cutting” press releases pretty obtuse. It will be interesting to see how much management cut costs here, but my guess is not by very much.(I really kind of hate how gold companies are run. Typically they spend like drunken sailors when times are good, doing ill advised deals, like the Gold Ore - Elgin merger, then they find themselves with their pants down when times are bad. I guess three brownfield properties are much worse than one in a depressed gold market).

But on the macro side It's strange that while the S&P500 and margin debt are at all time highs, most of the investor fear resides in the precious metals sector.

[ppp]

Your statement is bang on. Getting paid 700,000 a year is way to much. Can't beleive how beat up this sector is getting.  One thing here is low debt and some cash. Can't see gold staying here for long. The world is a basket case.  Got to buy these companies when no one wants them. Good luck

[maurizion]

It's obscene how much the CEO's of a lot of these junior mining companies are getting paid. They are just hanging on with minimal cash and many with debt and it is like they think they are running a fortune 500 company. Guess they will drain the coffer while these is still something there.

[ppp]

Funny this outfit isn't buying back shares. I see the CEO bought a few a while back. IMO payment for insiders should be less cash and more out of the money options.  

[the_ocotillo]

The thing that absolutely drives me nuts about this whole sector is the general lack of restraint during the good times, which leads to the proverbial "pants down" during the bad times. (But I don't think the executives care very much. Either way they continue with the outlandish salaries). God, wouldn't it be nice if Elgin at least announced that they have a