IMO CDE is more than a bit of a dog. More like a Great Dane. I have been keeping an eye on them for several years now because they are a silver major, but don't own any. They have a history of miscalculating funding requirements and dilution, and failing to meet shareholders' expectations. Palmerejo may just be CDE's saviour. Their management also sails really close to the wind with some of the PR, for instance with their claim that they own two silver mines in Australia.
I don't own BSG any more, so my knowledge of the company is not detailed, but my gut feel is that I would have preferred the directors to front up, yell out at the top of their voices "SORRY FOLKS, WE MADE A MISTAKE ON THE FUNDING, GOING TO NEED MORE CASH BUT YOU'LL HAVE A GREAT SILVER MINE AT THE END OF IT" rather than copping out by passing it on to CDE. Of course the sp would have suffered initially, but probably not much more than it has already, and the benefit to s'holders once production was under way would far exceed what you are likely to get out of it by holding CDE.
BSG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
