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Gold/Mining/Energy : GOLDEN PHOENIX MINERALS, GPXM -- Ignore unavailable to you. Want to Upgrade?

To: KipferlMeister who wrote (384)	7/23/2004 1:51:19 AM
From: Vince Moretto	Respond to of 811

Well at this point in time its a negative balance sheet. That is worse than zero. That is a fact. Alot of liabilities came with mineral ridge....almost 1/2 million in utility bills, 3.2 million bond requirement, a lack of viable mining equipment, and they were left with production facilities that required repair/renovation, and removal of literally tons of material before they could begin production. That is alot to deal with just to get your head above water....especially for a no-name junior...dilution probably was their only answer...either that or giving it away like they did Borealis. I can also see that the pieces are starting to fall into place that will allow them to climb out of the hole. By this time next year they will have two properties in production. Ashdown should turn a nice dollar, even on a small pilot plant the return on investment looks really good, assuming molybdenum prices stay up. And with the acquisition and retrofit of a vat leach mill, production at mineral ridge should increase dramatically the following year. I'm not expecting any dramatic spikes here, just a steady progression as things fall into place over the next couple of years. We need to see that realistic progress is made from strength as it develops, with a minimum of pie in the sky $150/ounce production cost projections, industrial mineral credit projections for minerals that we're not sure how to extract yet, pie in the sky acquisition/dilution schemes...after giving away the property (Borealis) that holds 3/4 of your reserves, etc. If they want to hunker down, I think they can turn the corner. But first they need to sit down in the drivers seat, close the sunroof, and pull their head/arms in out of the window. I can see that the action plan is in place, its a matter of not getting sidetracked again. Vince

To: KipferlMeister who wrote (384)	7/31/2004 11:49:02 AM
From: Vince Moretto	Read Replies (1) \| Respond to of 811

Well it looks like we are suffering the effects of that dilution right now. At the meeting they stated that there are 121 million shares outstanding with 60 million shares in the float. As those restricted shares become free trading, we get the selling pressure.....I believe that is the reason we are currently back at 21 cents. I believe we could continue to see this for quite a while. As you probably know, the previously announced proposal to authorize additional shares was removed from the agenda. Actually there was not sufficient shares represented at the meeting for a quorum. However the company still has 150 million shares authorized and 50 million preferred shares which can be converted to 50 million common shares. On the previously announced acquisition plans to be discussed at the meeting, they refused to provide any details...despite announcing that these would be discussed at the meeting. When I raised the issue of further acquisitions, the response was basically that due to competition in the industry they did not want to disclose anything, and that we would have to 'wait and see'. Where does that leave us on further dilution? I guess we will have to wait and see.....and that is what the market seems to be doing right now.....