Richard,
Relax, I will see to it that you get the release as soon as it is issued. Further, you have anticipated that a delay in the release means the news is bad. Let me make a bet with you. While the quality of the written English may be wanting, the bet is that the news will be good. You have a good point that the release could be sanctified by putting it on the PR newswire. God only knows why this action was not taken. It very well may come to a special shareholder's meeting before much longer. However, permit me to offer my take on the broader aspect of Global other than management.
For what its worth this is my opinion about the status of GPGI at this time.
Over the years there has been too much smoke regarding the presence of significant quantities of pgms in the ore at the Hassayampa to discount the existence of fire. While the Weaver Creek, just as the Hassayampa, represents the discharge and reprocessing, over eons, of material originating at the Oro Grande, there has been no production from the Weaver Creek. Multiple sampling down to 30 feet indicate a reserve of 100 million tons + and the material seems similar to that of the Hassayampa. Yet at the Hassayampa alone with its current quantity of homogenized and screened ore amounting to some 500,000 tons (and possibly being above 1 million tons) there is sufficient reserve to make Global a very powerful mining company. (Remember that there are a minimum of another 15 million tons of raw ore at the Hassayampa). This is particularly so since the ore is loaded primarily with pgms of which rhodium seems to be the metal in highest concentration.
The problem of extraction has bedeviled not only Global but apparently all the publicly traded >desert sands< companies. And, from conversations I have had, there are probably dozens, if not scores, of small private deals in which groups of investors have acquired leases which demonstrated the presence of precious metals. They spent their money on extraction to the point of exhaustion.
Also, remember that the >great< Stillwater took 6 years to show a profit.
Global has had multiple indications of successful metal extraction. None of these results have demonstrated that the recoveries exceeded costs and were thus economic. In fact none of them were economic. Also, recovery has always proven to be lower than what laboratory testing has shown. This, however, does not trouble me in the least. Consider that no effort at recovery of metal which could be processed by a refiner and for which payment was made has ever been accomplished by any company other than Global.
There are no industrial processes, to my knowledge, which have proceeded at top speed when ramped up from the research level to the production level. Multiple blind alleys, false starts and assorted glitches interfere with the achievement of a rational production model. I assume, therefore, that the failures of production levels to approach the laboratory findings reflect the evolution of a process which will show improvement in an upward curve over time.
This is a theoretical position. In actuality we have experienced a time factor in regard to anticipated improvement which falls outside what may have been reasonably expected although certainty in this regard is elusive.
While management must be credited with bringing the company along to a certain level of development further advances require a new orientation. Fortunately this is now being developed at the mill operation level by the fortuitous arrival of Mr. Mckay. His arrival was a matter of pure luck combined with Mr. McKay1s conviction, which parallels my own, that the metal is there for the taking.
In my opinion, a company with this much great potential should be trading in the $2 to $3 range merely based on speculation about its potential. The Global story needs to be told adequately, without hype, but truthfully and with all its blemishes.
What I hope for is that with the coming 50 ton test being organized and administered by McKay, with Twifords involvement, we will arrive at the moment of truth. I believe that this test will be successful and that it will answer any doubts about recoverability. At that point a public relations campaign will be necessary to move the share price to a much higher level. Without an adequate PR campaign the shares will not do enough. Aside from gratifying shareholders, a higher price level means that the company can ramp up to a much higher level of production. The reserves are there. There is ample physical room at the site. All that is needed is money for equipment and the hiring of additional personnel. Dilution of the shares will be minimized to the extent of the share price advance.
I also hope that the company will be able to fulfill its public relations and its managerial responsibilities in such manner as to assure that the fundamental virtues of this company become fully recognized by the marketplace.
Regards, Ed
P.S. I was mailing postcards for Global as you know but I am now persona non grata with Jensen so he's going to his transfer agent at roughly three times what the post cards cost him.
So be it. |
