I certainly am less than impressed with this deal, anyone on the planet could sell stock at half price with a warrant. This stock has already underperformed peer group recently and has lots of catchup to do. Admin costs are too high and bad deals seem to be a way of life. On the good side the properties are excellent, maybe best grouping in junior market, plus the company has 2 mills with one on care & maintenance and the other providing a $5 million annual revenue stream at present, what does that make the mill worth in an outright sale, multiples higher than lease cost. And both mills have been recently upgraded.
The one thing this company does well is exploration and done some real good property acquisitions with at least 2 company maker type properties and actually maybe three. It's too bad they can't seem to make the mills make money given the high admin costs and investments made. It seems Hecla has no trouible making money as they are paying $5 million per year plus operating costs to run the oxide mill and they wouldn't do it to lose money.
My view is simple, in the ground resource ounces will be KING again going forward and that happens to be something these people are good at, great properties and lots of ounces even if it's like pulling teeth to get them to promote this fact or get it right. This company has the properties to add lots of ounces very easily and maybe that is all they should attempt. Run up the ounces in a growing gold/silver market is going to be recipe for big gains over the next 2-3 years, far more than most think or suspect, this will be mega valuable to someone. This alone is why I remain very long this story as I try to focus on what they can do, not what they can't or always fail at and conditions are coming to the fore for the types of activities this company excels at, at long last.
