From: JAY TAYLOR
Subject: Summary of GPGI hotline message
This is Jay Taylor speaking for Taylor Hard Money Advisors, Inc., the
publisher of J. Taylor's Gold & Gold Stocks for the week ending February
22nd, 1997. This hot line message is normally updated every Saturday at
6:00 PM Eastern Standard Time and it is intended solely for the paid
subscribers to J. Taylor' Gold & Gold Stocks newsletter.
At the close of last week, our portfolio was up 7.1% so far this year while
gold bullion has lost 4.38% of its value in since January first.
With respect to my desert sands trip, I do not now expect to recommend
purchase of Global Platinum + Gold. It is my understanding from a third
party, that management was outraged by my requests for additional
information. However, without that information, I cannot in good conscience
recommend purchase of that stock. The information I sought was simply
intended to verify the validity of some enormous tonnage figures and per
tone values implied by the company when I and several other investors
visited Global's property. For example, I wanted to know the basis for
implying 62 million tons of ore at the Oro Grande and the potential for an
additional 100 million tons given that very little, if any drilling has been
carried out on these mineralized zones. I was also told that the grades of
precious metals being recovered were in the multi-ounce range and we were
told that the company has received payment for precious metals shipments. I
simply wanted verification of those facts.
If they are unwilling to report on mill head and recoveries, and show cash
flowing through their P&L from the sale of metals, what confidence level
does that inspire? Thanks but no thanks. I cannot recommend this stock
until the requested information is verified because I cannot begin to
understand what this company is worth without that kind of information. A
producing company (one that is fully reporting) is obligated by law to
provide the information I requested. Even though Global is not a fully
reporting company, that does not lessen the logic behind the need to know
answers to these questions in order to make an informed investment decision.
If the numbers talked about by the company are true, why would management
not wish to verify that information? It would bring enormous credibility to
the company from the established mining community. In fact, only when they
do provide that kind of information (and/or) begin to demonstrate the sale
of metal by way of cash flow circulating through their P&L will they ever be
taken seriously by the industry.
Jay Taylor |
