US Gold has taken a stand to suggest they understand that gold and silver are money, and they believe the security of owning bullion is greater than in holding cash in a bank. They also indicate by their actions that they believe gold and silver are going to be worth more in a few months time when they may need to convert that bullion back into cash to pay for their ongoing activity to build mines. People own mining companies because they believe the metals will go higher. Rather than sabotage the interests of investors with inept hedging practices, US Gold has taken a big chunk of physical gold and silver out of circulation, and may end up with a capital gain to help underwrite further development in the future. Imagine if more companies had the courage to take similar action.

Is this something that ECU has the current production capacity or leeway to do, i.e. 'withhold', say 5% or 10% of its silver production that would otherwise today go to the refiner, and stockpile this 'for a rainy day' ?

I know that the drilling program could be classified as a rainy day, but it will be raining much harder when the price tag for a mill expansion to 5000 tpd comes in. The withheld dore could then be sold, and presumably at prices higher than current, lessening the cost impact of the mill expansion, and improving profitability.

Just a thought. I wonder if management has considered it.

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