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Gold/Mining/Energy : Global Platinum & Gold (GPGI)

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To: Harry Roberts who wrote (9997)4/6/1999 8:08:00 PM
From: Bob Walsh  Read Replies (3) of 14226
 
Harry, I again state that I believe that GPGI will not see much of an increase in stock price until there are a series of substantial and increasing payments from a refiner. At that point in time a PR campaign would make sense showing: the positive and increasing cash flow, the # of tons per day being processed, the costs per ton and the net profit per ton AND the expected quarterly dividend per share. Then watch out because the demand for shares will be high. GPGI doesn't have to advertise/market their product. They only (VBG) need to be a low cost producer of high yield gold and PGMs.

If the yields continue to be as high as those from the samples, and the costs are in line with the costs they previously had (with a somewhat different process though), then the profit per ton of ore could be unbelievable - such as $30 to $50 million per year at just 50 tons per day. You could easily have a profit per share of greater than $2 which at a P/E ratio of 8 would give you a share price of $16.

Regards,
Bob
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