|Golden Minerals Company - AUM.t is an emerging junior silver producer with the flagship Velardeña project expected to culminate in annual production reaching 4 million ounces of silver and 80,000 ounces of gold when a new 2,000 tonne per day sulfide plant reaches full production in 2015.|
Golden Minerals Company - AUM.t
I loaded the boat at $5.12 range. This company has a very low float, plenty of cash and a huge short position. If (when) silver breaks through $35 this thing will take off on a huge short squeeze. They just had a huge financing deal done at $5.75. If anyone knows anything else please let me know!! Good luck to all!!
I hold it from the ECU silver buyout, disappointing stock for sure, seems like good potential moving forward, I hope you are right with your call.
I wouldn't touch this one with a 10 inch pole. This is the company which acquired ECU Silver in a so called "Merger of Equals". AUMN had some cash on their balance sheet (I think about $100 M) which was supposed to be the all magical cure against the short attackers of ECU. Instead, as soon as the merger closed this stock was hammered and crashed further 50% or so in a very short period of time (and mining stocks as a whole were not in a major downtrend at the time as far as I can recall). And exactly at the very bottom of this 50% drop, management suddenly declared financing which was like a major slap in the face to all ex ECU shareholders. Not to mention that the property which AUMN brought to the table (besides the cash) is in Argentina, a very risky jurisdiction (to say the least). Are they still planning to pour money on that property in Argentina? What a waste of Shareholders' cash! And now I'm hearing that they did another financing at bottom rock prices (which at the time they promised that they wouldn't do). Those who are still holding this company remind me of an abused wife who keeps on hoping that one day her husband would finally change. There are so many other similar opportunities out there, so why pick this one?
If I would have been anywhere near this at higher levels I would not touch this with a ten foot pole. But at $5.00 a share I think it is very under valued. They are focusing on strictly increasing production now and hopefully forgetting about Argentina where the government seems to be ready to nationalize the mining industry.
I have Jan and April call options on AUMN with stink bids in to acquire more (hoping to get filled on a dip).
Not discounting the risks or the management blunders - but, compared to its performance the last time gold and silver ran - it could give some very nice leverage over the next several months.
No guarantees though, so do your own due diligence...