Ken the G in GPGI is platinum.
I have copied a report from Leroy Stockman's forum:
Global Platinum and Gold
(GPGI) - NASDAQ. BB
Date:
Share Price:
Press Releases
www.gpgi.com
LeRoy;
I want to bring an outstanding speculative opportunity to your attention before it is too late to
buy in at low levels. The company is Global Platinum and Gold, symbol GPGI, which trades on
the NASDAQ bulletin board. For those who are interested and desire to do due diligence, I
recommend that they look up the information provided at the GPGI web site.
GPGI has 11 million shares outstanding, no debt, several hundred thousand dollars in working
capital(as of beginning of this quarter), and will begin, in several weeks, full scale commercial
production of gold, silver, and platinum group metals right here in the United States.
My 12-24 month target is $10-20 per share, and long term, the upside could be multiples of
this.
GPGI has control of two properties in our desert southwest, that host multimetalic deposits,
containing predominantly platinum groupmetals(platinum and palladium), as well as gold and
silver. The metals in these deposits extend from close to the surface, to hundreds of feet down.
Here's the kicker: the company has no debt, a 100 ton per day mill, and a refinery, both fully
owned, and 500,000 tons of ore sitting above ground, next to the mill.
The last piece of equipment for the refinery has just been installed, and production has begun.
Within weeks, we will be hearing initial production numbers, and when this happens, the stock
will likely catapult to higher levels. The platinum in the ore is of very high grade, and it is likely
that the 500,000 tons that have been stockpiled contain no less than 500,000 ounces of
platinum. At a cost of $200 per ounce to produce(which should be generous, since the ore is
already out of the ground, and the mill and refinery are built and payed for), this ore will net
$50 million in profit, or $5 per share.
The company has been getting assay results suggesting much higher grades of platinum than
mentioned in this estimate, with high grades of gold and silver as well, so this estimate will be
quite low. Most of the platinum in the world is mined in South Africa and Russia. The
supply/demand equation is tight, but unlike gold, there are no large above ground supplies
available to meet any significant increase in demand. Therefor, it is possible that platinum will
outperform gold in the next bull phase in precious metals.
I met with the president of GPGI this past week, while on my trip to Salt Lake City. Dick
Jensen is an incredible individual who redefines the words perseverance and tenacity in my
book. He has worked hard for over a decade to position his company to be the second
platinum producer in the U.S.(the other being Stillwater Mining, trading at over $20 per share).
He himself is a large shareholder in the company, and intends to steer the company in a
direction that will maximize shareholder value. The plan is to initially run the mill at 100 tons per
day...in my opinion, this will likely result in pretax profit of 50 cents to $1 per share in the next
12 months.
Once production is under way, the plan is to double production again and again and again. At
100 tons per day, there is enough stockpiled ore to last over 15 years, but this is only
scratching the tip of the iceberg......there are tens of millions more tons still in the ground, in
both the Weaver Creek and Oro Grande deposits. Those with patience should thus enjoy quite
a ride over many years.
I'm loaded up to the gills with shares. I can't wait to see what will happen when the world
realizes that tiny GPGI is producing platinum at a profit, and is sitting on a huge platinum and
gold deposit. The upside will probably surprise even me. I encourage you to take a peak at the
web site...plenty of info there, including the details of a recent offer by Golden Eagle Mining, in
which Global was offered $20 million dollars, or twice its market capitalization just for a piece
of the action. Global is considering this offer.
In summary, GPGI has to be placed in the speculative category, that is until it is producing at a
profit...but this will probably occur within 60 days. The upside is huge as:
1) yearly profit will likely be 1/2 to 1 times the current stock price in the next 12 months, and
exceed the current stock price within 2 years,
2) the realization that GPGI is for real will force the market place to put a value on the 500,000
tons of ore stockpiled next to the mill.....my rock bottom estimate places this value at $5 per
share,
3) there will be a land rush to stake out the territory around GPGI, and the market will place a
value on its large ore reserve and future profitability.....we could thus see my lofty stock price
targets in short order.
4) GPGI should be profitable for many years, even if the metals don't go up, but should benefit
tremendously from a rise in metals prices.
As soon as we have production numbers, I'll submit a more accurate valuation of the company.
I suspect my current estimate is low.
Currently being followed by
Wade Worthington
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LeRoy Stockman >end
The volume is increasing and it keeps popping up in price. I have reported on it before in this forum. This is a GPGI thread where they know more than I. It will surprise. I have taken a postion as stated before.
Gene |
