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« Russia and China to Sign Mega Deals | Main | The Week of the Record Gold Price »
Monday
Oct122009

Silverado Gold Mines: Time to Move On

Silverado Chart 13 Oct 09.JPG

With gold prices at record levels its especially disappointing that Silverado Gold Mines (SLGLF) has performed extremely badly for us. Our patience has come to an end and so we are now reducing our holding to no more than a token investment. The Management team have not delivered for various reasons and the stock price languishes in the basement.

With every investment we have to ask the question; could the cash be better deployed elsewhere and in this case the answer is a definite yes. Most of the gold producing sector is moving higher so whatever we get for the stock will be re-deployed elsewhere.


Although we have made money on this stock in the past Silverado has fallen from grace as above chart shows, so we have to face the music and move on.

Have a good one.

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Reader Comments (9)

I had my doubts about Silverdo Gold Mines even back in 2007. It had a huge share float. The last report I saw it had 438 million shares outstanding. There are plenty of excellent juniors to play. I try to look for as low a share dilution as possible. Right now Mountain Boy Minerals with a share float of 45 million is in serious play right now. DEC.v has a share float of about 15 million. They hit huge gold veins and that propelled the shares from under 10 cents to over a dollar. Network Exploration is waiting for lab results on coarse gold assays. I should tell you I own shares in net and mtb. This is not a recommendation and you should seek counsel if you are not a professional gambler.

October 12, 2009 | Unregistered CommenterDavid

Mark the fully diluted as 1.3 billion shares outstanding. You're lucky to get a penny a share.

October 12, 2009 | Unregistered CommenterDavid

Trading a 0.01 cent stock? your kidding this thing is dead

October 13, 2009 | Unregistered CommenterDi

silverado signed with dominic & dominic for fianancing. Are you guys the shorts who are trying to shake out the rest of us.The comments you make are moronic and self serving. The time to win is close.

October 13, 2009 | Unregistered Commentersilverado77

Yip, we are getting between $0.017 and $0.018, which is dismal, we got it wrong and are paying the price.

October 13, 2009 | Unregistered CommenterGold Prices

Dominic will probably get their money back at good interest, which is a better deal than try to squeeze a penny out of 1.4 billion shares. If Silverado takes a powder then Dominic will receive a large interest in a mine that has had all the work done for it. I think Mr. Anselmo has been working the same grounds since 1972. Some geo's never know when to quit.

Here is a quote from his "heart felt letter":

Silverado has ended up with three premier gold prospects in Alaska, with 100 percent to near 100 percent ownership and with one on the verge of production (Nolan Creek) and two, which, but for the sake of some detailed drilling and feasibility studies, could be readied for production.

In 1972 he started Silverado (38 years ago) and now we look forward to reaping the rewards. Some of our best people have been with us over 30 years; and many of our 18,000 valued shareholders, as long.

You can read the rest of it at agoracom.com. There is enough sugar in that letter to supply a bakery for a year. Mickey Fulp, the "mercenary geologist" did an article on the wacky ways of geos. Some are good at finding anomalies that are barely economic, but as long as there are naive sorts willing to buy stock subscriptions, then such geos will keeping drilling holes in the ground. I know one outfit that bought property that two prior mining companies puked to death over. Anyhow I found out from Cookie at Agoracom that the Nolan property in the most ideal circumstances only has an NPV of 16 million dollars. No I am not a short seller. Etrade won't let me short sell Canadian juniors, no matter how dodgy. Anyway, this is an answer to Silverado77.

October 13, 2009 | Unregistered CommenterDavid

The sentiment in this article raises the question of how one can be scared out of a stock in such a promising company and in fact a penny stock for that matter. Could the motivation behind it be from over-extension of investment capital or quite simply the over-extension of desparation? With the article having no alternative reccomendation other than the vagueness in the phrase of "re-deployed elsewhere" the writing comes with very little persuasion to me.

October 15, 2009 | Unregistered CommenterRay

Can you cite any projects of Silverado with a sufficient to move 1.3 billion shares outstanding? Do you have any measured and indicated resources to point to that would move such a huge float? I typically hear Silverado shareholders accuse me of being a shortseller. But I don't get any answers. As to the Gold Prices team, cash is a perfectly good redeployment. There is no need to be in a hurry. It is their prerogative to say, "I don't know". I wish more people could be that honest.

October 15, 2009 | Unregistered CommenterDavid

Ray,

The decision to sell one stock does not have to be linked with the immediate purchase of another stock. We will take our time and put what cash we get from the sale of Silverado into our current reserves. We are not in a rush to use it and will take our time. Neither were we scared out of this stock, we have been patient for long time and our patience has come to an end.

We do sincerely hope that it goes well for you and all of the other Silverado stock holders and we will drop in from time to see how it is doing, however with gold on fire we prefer to be in a stock that is responding accordingly, Silverado is not doing that.

October 15, 2009 | Unregistered CommenterGold Prices

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