Al's Insights – Mon 9 Apr, 2012

Gary Cope discusses recent events with Orko Silver

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Al KorelinGary Cope
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  1. On April 9, 2012 at 10:00 pm,
    castanheiro says:

    Hello Big Al,
    Mr. Cope makes a lot of sense. He seems like a real level-headed guy who doesn’t get shaken easily. Appears like the fundamentals are still in place for Orko, and the reasons he put forth for why Pan Am backed out makes perfect sense.
    Thanks much.

    • On April 10, 2012 at 9:23 am,
      Big Al says:

      Mr. C, I agree with you. Thanks for the comments.

      Big Al

  2. On April 10, 2012 at 12:54 am,
    Hemal says:

    Thanks Al.

    I decided to hold my shares rather than panic sell. Shows up as a big red line in my portfolio but the weak hands are gone, so the stock should base soon.

    I agree with Mr Cope; PAAS would have to issue huge amount of paper to get this deal done.
    At this stage I would require only one piece of feedback from Gary; Geoff Burns commented re La Preciosa, at a Q&A session re their Q4results presentation last month, more work was required to assess the structural integrity of the mine plan and the surrounding rocks.
    I have to admit, i thought of selling at that point, but came to the conclusion that Burns is flowing hot air to try and low ball the take out price. With hindsight, when ever I have ignored such signs, i have got burned……….one never stops learning in life!
    Selling now is stupid…….i am going to wait for the resource estimate and hope that it will resurrect the share price.

    Ps. I am not a geologist and should have blogged on this site when I read the Q&A script to get some ideas going……..again you live and learn!

    • On April 10, 2012 at 9:24 am,
      Big Al says:

      Hemal, Thanks for the comments. I personally agree with you.

      Big Al

  3. On April 10, 2012 at 4:38 am,
    Hemal says:

    For the benefit of fellow Orko enthusiasts, I attach the transcript URL…..look at page 14 of the report.

    Looking at the transcript again, I believe Burns wanted LP, but couldnt afford it.
    They would have to pay $600m takeover price plus build the mine…..Burns would have been lynched by PAAS shareholders, hence his comment about the “internal hurdle rate” not being met.

    I saw a Youtube clip, dated january 2012, where Gary Cope mentioned that a company larger than PAAS is showing interest…..has to be Fresnillo given they have a working relation with Cope, via the JV with Orex. He also mentioned that a smaller producer was interested…potentially Silver Standard or First Majestic?
    Any how, upon further reflection, I am going to wait for this to play out….makes no sense to sell out here- I would be following the worst rule of investing if I did “buy high, sell low 🙁

    I am going to email Orko and ask that they address Geoff Burns technical query regarding the “structural integrity” at tomorrow’s shareholders’ conference call.


    • On April 10, 2012 at 9:26 am,
      Big Al says:

      Hemal, I appreciate your further input here.

      Big Al

  4. On April 10, 2012 at 11:08 am,
    Matt B says:

    I have read that $270 million would be needed to build the infrastructure to process the ore.One big chunk of change when Orko owns 55% and is putting in zero capital to fund expenditures.

  5. On April 10, 2012 at 4:43 pm,
    Michael says:

    Thanks for doing this interview Al. As the shares were falling, I was thinking about making a puchase. After hearing the interview, I made a puchase this morning.

    • On April 13, 2012 at 2:42 am,
      The Big "E" says:

      Michael, You are not alone in your purchase decision.

    • On May 8, 2012 at 10:54 pm,
      Adam says:

      My observation towdars emerging and fastest growing India is that Today Indian economy has everything within it! Strong power enough to attract investment from European, Western and all over the world. After Independence reforms after 1990 India has emerged as one of the most potential economy in the world. Talk about Latest deal which GE had with Greenko for $115m is example how foreign cos are understanding possibilities and predicting investment value over it.Social cause is most of societies have adopted to optimism and understand social responsibilities which we can see in last couple of months Anna Hazare and supporters stood against corruption. Manmohan singh government was highly under pressure to handle such an issue.Lets the walk be perfect . “as public anger increases, corruption falls.” I’m fully in support to it.Vision can be made for 2020. A well growing India with double digit economy! Well organized political system, Boom in hospitality/technological/sports/ and many.Yeah sure!Middle class will still continue to add in economic growth as they constitute major share being democratic and under their observation it has become major challenge for government to run show. political single mistake can raise voice of many Time has changed lot political are answerable to whatever they will be doing further .Thanks Hemal and Mr Patrick! For process of initiation and contribution towdars society & nation.-Hemant

      • On February 1, 2014 at 1:09 pm,
        Milica says:

        Kate,This is a lovely rielizataon. I know it’s hard not to feel in competition with others out there. I do! But, like you, I’ve come to realize that my work is to walk my path the very best way I can. If I’m doing that, then the rest will fall into place.I’m glad you are coming to a place of peace around this. I think it will break open a big space where there’s room to grow!Lisa

    • On February 3, 2014 at 1:34 pm,
      Nari says:

      I am looking forawrd to TALKING to men the way I might talk to other women just asking the questions (beyond Do you know what time it is? without feeling nervous or shy. Maybe complimenting something. I’ve already started practicing. When my mom’s former repairman agreed to assist with removal and recycling of metal objects from her garage, he brought along a young helper. I complimented his hair and we talked a bit. It was good practice!