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Gold/Mining/Energy : The Molybdenum Discussion Board

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From: HotnSpicy	4/22/2006 7:30:27 PM
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GPXM Questions: I can't get a handle on resources or reserves. From reading the website, it seems as if there are only a few months mining available (21,000 Tons of 8%) plus what ever low grade material may be present in the halo. I have no idea what sort of cash flow GPXM may generate as I have no idea what the production rate may really be and how sustainable it is. There are some hypotheticals shown on the website, but that is assuming full production at high grades, which is not likely to be the case for any extended period. I find GPXM's current market cap quite high (136MM at $0.48 = US$65MM) considering the substantial uncertainty and the lack of good reserve data and uncertain production guidance. Comparing to Roca Mines 47.5MM os (C$35MM or US$30MM) and a much larger deposit (albeit lower grade, but has lots of drilling to prove the ore body), I don't see the attraction for GPXM shares. Free cash flow (i.e. less mill and G&A) for Roca is ~US$40+MM in the first year, more than current market cap (assuming $20 Moly). Comments/corrections welcome.

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