GPXM: Letter to the Shareholders
2009-10-22 11:00 ET - News Release
SPARKS, Nev., Oct. 22 /PRNewswire-FirstCall/ --
stockwatch.com
Dear Fellow Shareholders:
Last November I addressed you in a letter written during the height of the global credit contraction. At that time I wrote the following:
With this sudden shift [the credit crisis] has come the realization that of all the metals, base and noble, gold is hanging tough and showing the possibility of reviving first. General interest in our Mineral Ridge gold mine is on the rise, and we are fortunate to have this permitted and bonded asset in our portfolio. While cash remains precious, we were able to complete the first phase of our drilling program at Mineral Ridge before stopping in advance of winter. There are still hundreds of samples awaiting assay, but for now, management is focused on conserving cash through the reduction of our work force and elimination of non-essential spending.
I am pleased to report that Golden Phoenix has weathered this past 12 months, and accomplished a number of key objectives outlined in the above paragraph. The highlights include the following:
First, we have consummated the sale of our Ashdown mining interest to our former partner, Win-Eldrich, and are due to begin receiving payments on the $5.3 million sale this coming April. We are informed that Ashdown is in production, the price of a pound of molybdenum sulfide has rebounded to the mid-teens, and we look forward to a steady income stream from that arrangement for many years to come.
Secondly, we implemented operational changes within our company, streamlining, cutting back and reducing costs, and finding ways to do business more efficiently. Golden Phoenix is "lean and mean" again, and we intend to stay that way.
Thirdly, our pending joint venture with Scorpio Gold continues to advance. With the recent news that the Mary Mining Trust has agreed to sell its Net Smelter Royalty, the Mineral Ridge gold project can now be structured for even greater profitability. Scorpio Gold has proven to be an able partner, moving the mine assessment process forward aggressively. The recent release of preliminary drilling and sampling results indicates that Mineral Ridge appears to live up to its true potential. Upon completion of the J/V, we should all look forward to seeing Mineral Ridge return to gold production.
Fourthly, Golden Phoenix still owns the Northern Champion molybdenum property in Ontario, and the Adams gold mine adjacent to Ashdown. These properties form the basis for what will hopefully become an expanding portfolio, as we emerge from this current period.
I am sure you noticed, as many of you have commented, that management has been particularly quiet this past year. This was part of our design. During the darkest days of this recession, we elected to keep a low profile while we worked diligently to regroup and rebound. During this challenging period, please know that the commitment to this Company never flagged, never diminished and never deviated.
And now a word about people. Our staff - Lari, Wayne, Larry, Ed, Dennis, Jeff, Tito, Rich, Dominic and Jarren - have worked tirelessly and at significant personal sacrifice to keep the 'Phoenix' going. The same is true for our Directors, Officers and supporting professionals, especially our lawyers, accountants and auditors. It's been a tough process, not for the feint of heart, but it's been worth it. We are not out of the woods just yet, but with the understanding of our creditors and the completion of our current deals, our commitment remains to bring value to our owners and make you proud that you are part of the Golden Phoenix family.
Now, more than ever, the 'Phoenix' has re-risen from the ashes, and is poised on what I believe is the start of the next major move in metals. Stick around and together let's see what happens.
With best regards,
Robert P. Martin
President
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements by Robert P Martin, President, and other statements regarding the expansion of production at the Ashdown Mine, optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including continued market prices for the Company's mineral products. In addition, actual results could vary materially based on changes or slower growth in the molybdenum and gold markets; the potential inability to realize expected benefits and synergies in the Company's mining operations; domestic and international business and economic conditions; changes in the mining industry for base and precious minerals, especially molybdenum; unexpected difficulties in expanding production at the Company's mines; changes in customer demand or ordering patterns for molybdenum; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of skilled miners; the need for additional capital and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Contact:
Golden Phoenix Minerals, Inc.
Robert P. Martin, President (775) 853-4919
investor@golden-phoenix.com
SOURCE Golden Phoenix
Golden Phoenix
CONTACT: Robert P. Martin, President of Golden Phoenix Minerals, Inc.,
+1-775-853-4919, investor@golden-phoenix.com |
