John: Thank you for your well reasoned and thought provoking reply. Let me toss some quick random thoughts back to you.
The presence of CPR and resurrected USSR gaining physical presence in Cuba, Venezuela, Panama, Peru, Bolivia, and so on, it seems clear that no area in either Central or South America can be considered free from industrial nationalization over the long term. I'd say Africa is off the radar screen entirely.
Graft and corruption has been the traditional way-of-life in many of these locations; I'm thinking of Guatemala and Mexico where GLG has asset presence. On the other hand, with the geopolitical climate the way it is, considering islamic nihilism being on the rise, seemingly there are no risk-free mineral plays available. Odd isn’t it, that global unrest has traditionally been viewed as a Bullish variable for gold?
At what point should one separate the mining exploration aspects of the gold market, which seem particularly vulnerable to social unrest, from gold as an existing, in-hand, commodity? At some point gold production will be stopped in the regions mentioned – at least it seems that will be the case – which could bring several of the mining/exploration corporations, producing in these unstable regions, to their knees.
Back along, when GLG merged with FGX it took over most of the FGX assets, but far from all. As part of that deal the former FGX CEO, Randy Rafael, was named to the GLG board of directors. In addition to GLG stock per share exchange for those assets, the residual assets of FGX were retained by a spin-off corporation, CKG; this residuals included mining/exploration sites and $40,000,000.00 cash assets. Additionally, Mr. Rafael’s remains the CEO of CKG and is said to poses the unusual ability to recognize and deal with the Latin American mind set.
What I’m suggesting is, since Mr. Rafael sits on the GLG board, will his presence in that position, prove to be a huge, publically overlooked asset – at least over the long run? Mightn’t we reasonably consider CKG as future GG take-over opportunity? Or might that be part of the current, undisclosed plan?
Hopefully the GLG board will be exhumed and regain some thread-participant interest. |
