Claude:
I still find GEO too hard to resist at these prices! It's incredible to me that a company that's producing over 50,000 oz of gold per year, rising to over 100,000 oz in 2001, only has a market cap of $12 million (Can). That's less than half the book value, even after the major writedown at the end of last year.
The PR of early April says that the financing to start up Vueltas del Rio in Honduras is expected to close "within 60 days" -- i.e. by about the end of May. I understand from the company that the DD for this has been done and they are just awaiting regulatory approval. The funds are coming from Resource Capital Management and apparently this will be the first investment of their new Resource Capital Fund (No. II) -- so they are also anxious to close the deal in order to be able to launch their new fund.
So Vueltas del Rio could be in production by the end of the year. At a cost of only $169 per oz., with 300,000 oz. recoverable to date, this will provide lots of cash flow for further exploration to increase the resource.
So.... currently producing 50,000 oz.... financing almost in place for another 60,000 oz/year at low cost.... excellent exploration prospects... major stock exchange listing (TSE).... and only $0.22 a share! Down a bit from the old high of $7.70! [vbg].
Am I missing something here!?! Other than the general state of the market, do you know of any reason why GEO is so cheap? I'd really appreciate your comments. TIA.
Best regards,
Howy (GEO of course) |
