Friday, June 24, 2011

Golden Minerals (AUMN) ( and ECU Silver ( is "A merger of equals": 100% agreement here

And so just a few minutes ago, Golden Minerals (AUMN) and ECU Silver ( announced they were merging. Here's the NR and the key phrase here is "a merger of equals". Gotta agree with that, at least on a managerial basis, as both companies are pisspoor mining operators as the Apex Silver debacle shows on one side and the serial losses of show on the other. Also, the way overinflated top managers' salaries at both companies are equally shareholder unfriendly.

Both stocks are trading significantly lower on the news, too. The likely explanation for this is 1) idiot rahrah brigade at are looking at AUMN and thinking they're getting diluted and 2) the slightly more sophisticated AUMN fans knowing full well they're getting led up the garden path on this one. DYODD.

UPDATE: More on "a merger of equals":

Yup, equally crappy share price performance this year. This deal makes more sense by the minute.