Rick Rule at one time did have a position in Golden Minerals. I don't believe he has a stake in the company at present but I have no doubt it is on his radar.
Rick is very focused on two major themes which are management and most importantly how is management in today's environment managing the company's cash position.
I suggest anyone that has any interest in the precious metals sector do some homework today as we speak and that assignment is go to any of your favorite precious metals company's website and determine how much working capital free cash each company has available and it's ratio to outstanding shares or total market cap. Go to the web sites and detemine the burn rate of the free cash or call investors relations or company management to verify.
Now how many of those companies can continue in business for another 6 months or even 12 months based on today's current market pricing.
Now look at Golden Minerals and tell me they aren't in the top 20% of all the precious metals equites that can weather a storm simply based on the cash position they have today. I would venture to say probably in the top 10%. If we have another year of precious metals consolidation it looks like 80% of the PM's could get wiped out.
You guys should be on the other 80% of the potentially failed boards and asking management how they will survive without cash and with a lack of funding and look at Golden feel thankful that the company has been prudent with the way they have managed the cash up to this point.
