jimh068's post about the Chicago show
CONDENSED CREAM OF Chicago Conference: jimh068’s posts (thanks jim) on the Chicago Conference condensed, slightly edited, minus a few Kelly posts with a few support additions from me………..
First off as others have indicated, Rob has to be very careful as to what he says any more. His lawyers tell him he can not even legally update the web site any more.
Production is still about 1 bag a day. Rob said they have made 4 sales to date. He also said a shipment is to be made on Monday, so I don't know if that is the fourth or the fifth. They are mining seven days a week. The mill is running 7-10 days then usually down a couple of days for maintenance and repairs. As it stands, they are running at a profitable level of production now.
The the SEC Guide 7 and Canadian NI 43-101 should be out in about 4 weeks. This is only going to prove up what they have discovered to date.( The first section of his analysis, limited to the South Zone, has been completed. It delineates 4,220,240 pounds Mo (2,774,360 measured plus 1,445,880 indicated) along a 950-foot strike, sufficient to feed Ashdown's 100-ton mill for approximately four years.) Rob is hopeful that they are just seeing the tip of the iceberg. I think Rob was talking about 4-5 mil. Lbs of proven reserves now.
UNLESS they expand the numbers using additional data from the North Zone
Rob is talking about big friends in high places. This is Sprott, JP Morgan, and something ???? Capital out of CA. Robs got some help with expansion, stock support, company support.
Rob says WEX is friendly. WEX did not pay the $300K owed from Sept 30. Rob said the LLC contract has to be followed. This agreement allowed for the liquidation of it’s partners interest in the mine. Rob said that is too harsh a penalty for 300K, so 9.5% and money should do. It will still take a few months to complete mediation, but this will not stop company, or end up in court.
The presentation was only 20 minutes. Rob went through pictures of the mine and moly vein, no time left for any questions. Then I went to the display area to talk further with Rob.
This conference generally has smaller mining companies, but, everyone was around GP display. Now it could have been because of Kelly! Did I say how attractive she is? Well there was 1 or 2 people at most booths and about 10 at GP's. Everyone was firing questions at Rob, that’s were he went into the Sarbanes/Ox thing. I had to stand in front of another company’s booth just get close enough to hear and talk.
Rob says everything is progressing nicely, however slower than most want. This is one of the things he said you’re not going to believe, or maybe you will, Rob said when he was in Toronto, he could not take the money that was trying to be thrown at GP. He tattled off about 5 names of investment writers, funds, houses that wanted in and he can not let them. Here’s Rob's problem, fully authorized shares. He is getting maxed out with authorized shares available. This has to be solved.
Rob went through a few scenarios.
First a reverse split and issue more shares. He knows the shorts would be all over that and drive the share price right back down.
Second would be to merge ( buy out) an other company with a low float, and have available shares for large investors. He mentioned TSX exchange as a strong consideration. Boy I was standing there trying to think of a TSX company with a low float, low share price, and management that might want out, and maybe he read my mind and winked at me. WEX?
He then reiterated the fact we have some strong friends now, and these strong friends would be willing to help our little company get bigger. He said take a look at what Blue Moly did and we may be able to do the same. knock-knock
Rob kept saying that we are looking at 1 acre out of about 220 acres. They drilled down and hit moly 100 feet below them that is 20% moly. Rob thinks this vein is from one end of the property to the other and maybe down 100's of feet in width. It runs at an angle up the mountain. He doesn't know for sure and that is what they are going to have to prove up in the future, and will, he said.
Rob went into the company adding a second ball mill( I think). They already own one more, and just put up a small building and pipe into the mill. It would be quite easy to double the mills capacity. Not expensive too or time consuming. That should be later. They have the second scram being mined, but it will take about 5-6 scrams to put the mill up to capacity. They have to drift and timber as they go along so ore slows down to the mill sometimes.
Rob's first thing out of his mouth at his presentation was that GP is a precious metal mining company and not just a moly. mining company. He mentioned that MR would be easy enough to start up and that they will at so point, probably not too far down the road.
He did not talk about Champion. I asked about Champion and someone else’s question got taken and we never returned to the topic.
Rob sees bigger prospects down the road. Champion is to begin something this summer, whether that is exploration or more I couldn't tell.
Rob thinks our BIG FRIENDS will be leading us to greener pastures down this merry road. These friends were mentioned several times and so was the fact that they don't have to change there name every week.
Rob has great vision, others are seeing his vision, and are understanding the scope of GP. He knows that not too many others have heard the story yet. It is my observation that he is following his plan as he laid it out some time ago. He said the building of the Phoenix is going to begin. He has the backing they have needed, and that they are big friends, with big ideas as well. He stresses that this will still take a good deal of time, but the picture is about to unfold.
One of the most important guides I came away with was the anticipated change in share structure that will be done with shareholders of present in mind. He does not know how this will happen yet, but knows it must. He also is 100% committed to the shareholders because he is one of the biggest shareholders of us all.(wex)
After spending a couple of hours with Rob, I can ignore these bashers until they are red in the face(and their wallets) because they don't have a clue. They(he) isn't even on first base with the comments, does not know a thing about this company, other than what is read in the paper.
Rob always follows up with, "ya know I can't guaranteed anything" but we're working hard on this.
(THIS is WHAT I came up with today from the new numbers (oneofsix))
Annual Prod in lbs based on 155,520/207,360 lbs a month
1 Year 4 Years 10 Years 12 Years 16 Years
1,866,240 7,464,960 18,662,400 22,394,880 29,859,840
2,488,320 9,953,280 24,883,200 29,859,840 39,813,120
The company said they have enough moly to run the mill for 4 years….. @ 155K a month that puts them in the realm of 7.4 million lbs of moly. Based on those numbers, I expect GP to announce they have an additional 3.5 – 5 million lbs of moly in the North Zone.
Jonathan Sprecher’s analysis was LIMITED to the South Zone, The company says that is enough to feed the mill for approximately four years. DON’T know if that includes this painfully slow build up to production, or is based on 4 years of the mine/mill at max production.
My numbers are based on consistent monthly production @ 155 - 207K lbs of moly.
ANYONE?????
Does the restructuring make this null and void????
The financings that made the mining and milling possible will receive 15% and 12% of gross revenues per sale (total of 27%), respectively, until both financings are retired. Those portions of the financing costs which are not categorized as production costs will be paid from GP's share. 27% of 2.1 mil(profit with taxes removed @ 25%) is $580,921.............
EITHER way……….we SHOULD be DEBT FREE by this time next year........
On or prior to August 31, 2007. The Company, or its assignee, has the option to purchase the production payment for one million three hundred thousand dollars ($1,300.000.00), less any amounts already paid pursuant to this Section 1.2, if written notice of the exercise of the option is given on or before August 31, 2007, and the purchase price is paid within ten (10) business days from the notice of exercise.
Between September 1, 2007 and December 31, 2007. The Company, or its assignee, has the option to purchase the production payment for one million five hundred thousand dollars ($1,500,000.00), less any amounts already paid pursuant to this Section 1.2, if written notice of the exercise of the option is given between September 1, 2007, and December 31, 2007, and the purchase price is paid within ten (10) business days from the notice of exercise.
After December 31, 2007. The Company, or its assignee, has the option to purchase the production payment for two million dollars ($2,000,000.00), less any amounts already paid pursuant to this Section 1.2, if written notice of the exercise of the option is given after April1, 2008, and the purchase price is paid within ten (10) business days from the notice of exercise.
21 Apr 2008 is the big day………. |
