Below is the email I sent to IR, and their reply,
With the AUM/ECU merger, I became a Golden Minerals (Golden, AUM) shareholder. Since the merger announcement on June 24, the AUM share price has gone downhill from approximately $19 to a miserable price of $7.77 today, and with no end in sight.
So what has caused this greater than 50% decline, and how much discussion has gone on in the Golden boardroom on how to increase the price back to a level at least where it was when the merger was announced?
Was the merger a mistake? Is there less value in AUM now than before the merger? I don't think so to both. Does Golden pay attention to the amount of short selling going on, and if so, is it doing anything about it? Hmmm, it doesn't look like it.
I an really frustrated about the silence coming from the company. I know that it has only been a month since the merger, and one shouldn't expect miracles in a month. I was, however, impressed by your goals and seen in your recent presentations at the latest conferences that you attended. Why do you not issue a news release and tell the mining investment community what you are doing, and not just 50 or so people in a room? Then, shortly thereafter, wow that same community with drill results both from the Velardena and Chicago sites and the massive sulphides deep drilling program which must now be way overdue (this program was started about 3 months before any merger announcement. I know that that project has had problems - drill problems, drilling a mile underground to find what was already found before, etc, etc) These drill results, if they are up to expectations, would, I hope, get the shorters to cover, make investors sit up, and increase your market cap.
and the reply...
Hello xxxx,
Thank you for writing. Please understand we are frustrated with market action and AUMN's share price as well. The members of our management team all have significant personal stakes in Golden Minerals Company. They believe strongly in the company and in its business plan. They are also a tremendously talented group who have the passion and experience needed to drive the company forward. As you know, we closed the ECU transaction just four weeks ago. We are now beginning work to further develop the mine and make improvements in the oxide plant at Velardeña in Mexico. We also continue to advance the El Quevar project in Argentina. These activities consume cash and as such, would have left us with a cash position we were not comfortable with at the end of this year. The Sentient Group, our largest shareholder, continues to support the company, as shown in yesterday's announcement of a $30.6M private placement with Golden. This transaction restores Sentient's investment in Golden to its pre-ECU transaction percentage ownership, and it removes the need for Golden to go to the markets any time soon. What Golden needs to do, and will do, is execute on our business plan. This should ultimately reward our shareholders.
We understand the desire for news flow. It is Golden Minerals’ practice to issue a press release when there is material information to report, rather than periodic updates or releases on individual drill results. We do provide ongoing updates as part of investor conferences and meetings. These presentations are available on our web site. You may be interested in the presentation Jeff Clevenger, our CEO, made at the Precious Metals Summit last month. This webcast is available on the home page of our website: www.goldenminerals.com
With regards to your mentioning of short-selling in AUMN shares, you are likely aware that the vast majority of short sales in the U.S. financial markets are legal. We have not seen evidence of libel or other events that would provide grounds under which to pursue legal recourse.
Please feel free to contact us if you have additional questions.
Best regards,
Karen Winkler
Golden Minerals Investor Relations
Tele 303.764.9170