The story continues...
USAS was supposed to have had the old Pegasus property back in production, finally, by now... but, no, something broke down and it takes time and money to... etc. etc. The USUS "management" took over a producing mine that was making money... even at $12 to $14 silver... and now at $26 silver they're losing money... and I'm now supposed to believe they'll make enough money at the low grade Relief Canyon mine... that requires quality management to stand a chance of becoming profitable... to justify their Rx Gold BS stories about how wheeling and dealing was the path to dominating the mining industry in the future ?
Looks less like Casey at the Bat... more like George Plimpton playing football.
The new wrinkle in the USAS story is that not only are they losing money mining silver, and not getting Relief Canyon operational... they've also lost 40% of the once 100% owned property in Idaho... the Galena, Callaway, and Coeur... while saddling the company with debt. If all they'd done was sustain Parker's focus, they'd likely be earning over $2 per (pre-dilution) share now... while having built up a very large bankroll by now... making it possible that U.S. Silver could become a real player this cycle. Instead, they've moved backwards... from being a successful and up and coming producer... to being a failed miner and a failing developer...
The only possible bright side to any of that is that they lost that 40% to Sprott... unless it was Sprott that inflicted them on investors in order to get his 40%... in exchange for pawning Relief Canyon off on them ? An optimist might hope that Sprott being a 40% holder now might means the history of gross mismanagement should end at some point ?
I walked away before they completed the Rx Gold deal... glad I avoided what they've inflicted on holders... but, U.S. Silver had the potential to be great... and now as USAS... its just another POS lighting investors money on fire... and pissing potential down a rat hole...
I'll consider showing interest again when shareholders decide they want and need capable miners as management to run two mines... that both require capable management... not financial engineering in a business the financial engineers don't understand.
Until then... there are significantly better opportunities out there now... which I own less of now... because of the time and value wasted waiting for the former U.S. Silver's potential to be realized...
Rocks, Management, and Money are what makes mines work. Two out of three the same as nothing. Morons on a board of directors who are willingly corrupted... predict the future without fail. |
