Posted On: 10/25/2012 12:53:32 AM
Post# of 4018
Finally, it’s good to see another voice of reason on the SIRG board. I continue to say the exact same thing…that SIRG will accomplish its goals…only that my timeline is simply different from that of most other posters here. My only major disagreement is that it DOES matter when something happens…only because the longer it takes to reach our production goal, the more things can go wrong, and the more financing we will need.
Can we maintain our current base PPS? I think so…within reason. The longer we go without final permits the more at risk that base is. Will we reach .03 - .05 upon word of ADEQ permitting? Highly unlikely, although I concede it’s possible. I think we need clear signs of funding before we reach that level, but with a thinly traded stock like SIRG the potential is there. I think that funding news will only get us to the .05 range, mostly because I think the funding won’t look much different than it currently does. If it is more beneficial, maybe we could see .15 on that news, but that seems high to me.
The longer we sit under .01 the more expensive financing is. The longer we sit waiting to get producing, the more shares hit the market to fund day-to-day activities, and they hit the market at volumes that hurt our bottom line because of the low price. I wish Rod had been more conservative in his projections so that investors could be pleasantly surprised by milestones, not disappointed when we fail to achieve them on time. It is those high expectations and lack of follow through that I believe has kept this stock from trading at or near FMV, and in the long run this simply makes financing more expensive, which eats into the value of our shares as a percentage of the company.
At 150 million shares, I owned 2.33% of SIRG. At 350 million shares, that is down to 1.00%. At 600 million it goes down to .58%. Yet at .01, 250 million additional shares only nets SIRG $2.5 million…not even enough to get the mine opened and producing. If we sit until late 2013, how many more shares at .01 will have to be issued to generate the cash to keep things running and get the mine up and producing? We need the PPS to go up, and we don’t go up if SIRG keeps missing projected deadlines.
Can we maintain our current base PPS? I think so…within reason. The longer we go without final permits the more at risk that base is. Will we reach .03 - .05 upon word of ADEQ permitting? Highly unlikely, although I concede it’s possible. I think we need clear signs of funding before we reach that level, but with a thinly traded stock like SIRG the potential is there. I think that funding news will only get us to the .05 range, mostly because I think the funding won’t look much different than it currently does. If it is more beneficial, maybe we could see .15 on that news, but that seems high to me.
The longer we sit under .01 the more expensive financing is. The longer we sit waiting to get producing, the more shares hit the market to fund day-to-day activities, and they hit the market at volumes that hurt our bottom line because of the low price. I wish Rod had been more conservative in his projections so that investors could be pleasantly surprised by milestones, not disappointed when we fail to achieve them on time. It is those high expectations and lack of follow through that I believe has kept this stock from trading at or near FMV, and in the long run this simply makes financing more expensive, which eats into the value of our shares as a percentage of the company.
At 150 million shares, I owned 2.33% of SIRG. At 350 million shares, that is down to 1.00%. At 600 million it goes down to .58%. Yet at .01, 250 million additional shares only nets SIRG $2.5 million…not even enough to get the mine opened and producing. If we sit until late 2013, how many more shares at .01 will have to be issued to generate the cash to keep things running and get the mine up and producing? We need the PPS to go up, and we don’t go up if SIRG keeps missing projected deadlines.
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