Robert
Reporting as a public company has never been the strong suit of GPGI. Public relations has also been deficient. The company brochure offers some simple financial info, but details are missing. The reality is that GPGI has no cash at this time, no significant debt (other than $200,000 owed to Lamont re the Oro Grande) and what are probably very high value properties, perhaps especially the Oro Grande.
Should you invest in this company at current price levels? Management has always been the problem with this company. The arrival of McKay has been and remains a blessing. Bear in mind that every desert dirt, Maxam, USPower, Naxos, Chip, Birch Mountain, have all failed, so far, to become producing companies, despite their inherent ( and overt) promises. Of course IPM was a wipeout. So why is there such special disgust and impatience levied at GPGI?
The answer is Jensen's lack of managerial skill plus his failure to oversee development because he is not knowledgeable about running a mill. He allowed incompetence to persist. Also, he lacks know-how in dealing with shareholders ( aside from his ability to raise money).
The leverage in GPGI, if it becomes a producer, is phenomenal. IMO it will be bought out by a major at an enormous multiple of the present share price. But the gamble is time. Possibly the required time to get to a production level will exeeed funding ability. In this case a collapse, bankruptcy, or takeover will occur with the unfortunate result that the takeover outfit will take care of itself at the expense of current shareholders.
So, to buy or not to buy is the question. As for myself, I hold shares at an average price far above current levels and I am not selling.
Ed
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