Ram, I recently did a review of the key postings on this thread.
My review suggests to me that GME is only doing what a lot of other juniors do in the same position. i.e. in my opinion, they are "waiting out the downturn" in the POG. The only recent twist to this move is the resignation of the entire board. Again, I would suspect that this is in an effort to save on director's liability insurance premiums. These costs aren't cheap. I think that it is just good business practice (provided there is not something else going on that I have not previously considered). How do you explain a 200% increase in the value of GME's controlling shareholder, Matcheawan Resources (YMT.A-X) so far this year. There is a tempting 60k available at 4c.
The key aspects to my study was the increase in reserves and the decrease in the cost of production up until the Central Banks started selling off their reserves. The Glimmer Mine to its credit continued operations until May 10, 2001 when the POG closed at US$268.6. When I did my study, the POG was at $312, a difference of ~$US43 or ~16%. My mining professors used to say that in a cyclical mining industry (especially base and precious metals), it is like waiting for a break in the dark clouds on the horizon after a tropical rain.
For those of us that think we understand the mining game (in my opinion, Murray Bubbis- explains it the best), the comment by Exall is of questionable merit. Is it material or mud slinging? Did GME out-fox EXL by the mass resignation of the BOD? And this was EXL way of getting back at GME? Petty stuff eh?
Once the "skies have cleared", there is enough pressure on GME from, George Kent, Bo McCloskey himself, TOM Capital, etc. When the timing is right, the filing requirements will be made so fast that the average investor will not know what hit them. An astute management team should be meeting as we speak, discussing their plans for re-commencement of mining. The biggest hurdle will be the financing of the re-commencement of mining. And you can only get this funding if the ("dormant") management committee determines that the POG has stabilized enough to recall the employees.(another arguement for contract mining, i.e. in a downturn there is not as much grief). As an aside, their GM is/was a contract employee.
So, I am hopeful that once the POG shows that is is in a sustained up trend (looks like it based on Kitco graph over the past six months), we should be back in business at the mine. Because they both still have debts to be paid. EXL itself is at historical lows. If you are convinced that on opening, it should be at least 35c, there is an easy double waiting to be had. Matchewan, at 4c should also be an easy double ONLY SHOULD production resume. Of course GME was over a dollar before the mine closure. And when the mine closed the only negative aspect was the low POG. Most of my junior golds have done quite well, so keep an eye for movement on EXL and to a lesser extent YMT.A, and MCS (McChip).
CAUTION: These are my personnal views, do your own DD before making any investment decisions. I do have a position in GME, EXL and YMT.A and believe that the Glimmer Mine is a world class deposit; but share values has been decimated by a bitter litigation battle (that was recently resolved) and a POG that is coming out of the crapper.
Winzer |
