Ever heard of a mining company owning property and producing yields in thousands of tons, but never reporting any revenues whatsoever? Well, Silver Falcon Mining, Inc. (OTC:SFMI) is one of them. It is also one of the few mining companies with a board of directors compiled of people who have much experience in this industry, yet no one of them is a geologist. Which, according to traders is just fine.
The session today might prove the above point. Trading activity will be most probably affected by the announcement from the company this Thursday, regarding the production from one of its properties up to Dec. 31 last year. Obviously, this production is currently stored, and investors can expect to see revenues on the balance sheet at some point this year, or maybe next year. In terms of balance sheet, it is also important to mention the immense amount of consulting fees for 2010, totaling more than $4.4 million. This is roughly one third of the total accumulated deficit since inception. Yet, this is just fine, according to the management of the company. 
[BANNER]
Speaking of management, there are two key individuals there, who have a very interesting story. Although Silver Falcon is proud with the extensive industry experience of its board of directors, the facts of the matter are slightly different. For example, the CEO Pierre Quilliam and the VP Allan Breitkreuz have worked together for quite a long time, and not only in Silver Falcon. This duo is no stranger to the automotive, WiFi and Internet industry as well, where it did not make quite a career, let alone bring revenues. Let alone, it is a mystery how a person goes from the WiFi business to mining just like that, as if just switching from one cable operator to another.
That said, there is uncertainty, but there is also hope. Seems that the company is willing to go the extra mile and reward the investors who stick with it and believe in it.
Until then, however, it is caution that should be applied when considering Silver Falcon as an investment option. As the old saying goes, not all that glitters is gold!
