geoffrey - interesting interpretation of the "accumulated deficit."
Did you miss the fact that GPXM was nearly dead and carved up as a bankruptcy filing, such that the large accumulated deficit mentioned is in fact an artifact from the prior management? I'm not surprised or alarmed by the accumulated deficit. I would be if GPXM had fully developed the projects and had been operating them for 5 years.
I suggest a read of one of the 10-K forms from the last three years. One should focus on what THIS "new" management team has been doing during their tenure.
Sure looks to me like they have accomplished a lot in a short time frame:
*** Pulled the company away from the brink of bankruptcy
*** Revitalized and restarted mining at Ashdowne
*** Cleaned up a terrible looking balance sheet
*** Generated operational profits from mining
*** positioned the company for growth.
I don't care if they are high grading the deposit for the next two to three years. That should be enough time for this group to get the Mineral Ridge property back into production and generating more cash. Then they have enough time along with their own drill rig to do the exploration work that would take others many years to accomplish. GPXM should have enough time and resources to define moly and gold resources way out ahead of mining.
But some clarification on a few points:
Even now while they mine this high grade moly vein at Ashdown they are losing money.
The feed rate to the mill is way less than the full capacity. They are not feeding the mill because they have been in development mode. Remember they started azz backwards on the project since development work usually proceeds milling. the development work is completed, or nearly so, and once the focus shifts back to filling the mill cash flow should increase nicely.
But they cannot count on that incredibly rich vein lasting long. It's an aberration.
We'll know with in the next 4 months or so more about the vein and its extension once the 43-101 reports come out. Then one will be able to make more definitive statements about the long-term potential. But hey, even if this vein peters out in a few years - if it provides the cash flow to allow GPXM to start up Mineral Ridge and to do exploration then I'm fine with the high grading.
For now outstanding shares are growing, warrants are added,
The hope is that as the Ashdown Mine reaches full capacity through the mill, that dilution is over.
litigation expenses continue
What litigation is being referred to? I thought all outstanding lawsuits had been settled as the company cleans up the past messes. There might be an expense for an arbitrator in the WEX matter, but how much do you think that is costing and does it have a good "risk/reward" associated with it?
prior management is getting paid off in monthly payments,
Yeah, so? What is the beef here? GPXM lives up to its commitments? THAT certainly can't hurt the company's reputation in the business world? Once again it is just part of the restructuring and cleaning up of the old messes - this management team has been having good success.
The moly angle that looks best to me now is Thompson Creek, maybe Mosquito.
Ah, THERE! There is the "issue." I suggest that GPXM is a TURN AROUND PLAY and a development story. TC is an active, on-going operation. GPXM, as a development/turn around play should not be judged with the same criteria as a major N American dog in the moly space. Investing in junior miners takes a whole different mentality, focus, risk tolerance and personality. It is entirely possible that GPXM doesn't fit ones investing temperament?
Good luck with whatever you decide.
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