Richard, yes, both companies are very interesting. Before discussing
both companies, I have to base on the assumption that all their public
news releases, annual and quarterly reports, statements etc are true.
I think both companies have similar type of properties in similar area but they approach it in totally different ways.
IPMCF uses the formal way.It finds a big engineering firm, grid drilling, fire assays,recovery testing,feasibility etc. The good thing about it is this will give the investor more confidence. If they are able to do the pre-feasibiltiy on the 1st sq. km.(after the recovery testing ok and infill drilling), investor can even evaluate the company based on the amount of proven reserves calculated. But the main drawback of this is it will take a while to go to the production phase, it is using more money, the fire assay is showing lower grade than GPGI's because the fire assay may not show all the
metals there. And the main problem may be when it is doing the
recovery test, Behre Dolbear may be using the conventional recovery
method, and it may not be able to extract any precious metals
or it may only extract a small amount of metals compared to GPGI.
The reason I say this is because Kilo Gold, which has similar
type of properties, tried conventional method and was not able
to extract precious metals and it is using special leaching method
to extract the metals now. So the recovery method may become a problem or delay for IPMC especially it seems to be holding off future drilling etc and wait for the recovery test.
GPGI is using a totally different approach. It did not key in
the assaying of the properties. It just tried to go to extract the metals and generate cash flow to expand the operation. Now it seems they are succeeding (after more than 10 years of trials). If they
are able to get the $80,000 to $100,00 for their first batch
of sludge and if they signed a long term contract with Eastern
Refinery, they seem to be on the road of huge success and seems to be a better bet than IPMC now. The main drawback of GPGI is that
no one really knows the reserves or overall grade of its properties.
So investors can only base their evaluation on the earnings
generated by the company. So GPGI has to keep expanding its production capacity to justify higher and higher price.
Both stocks seem to have good potential . But please remember, to make good money you have to buy the right stocks and sit on them long enough.
Good luck. |
