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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: JACK R. SMITH JR. who wrote (6538)	7/7/1998 12:15:00 PM
From: Mike McKay	Read Replies (10) \| Respond to of 14226

I have been reading this thread for the last 18-20 months along with a host of other threads. I have abstained from contributing - so this first one will be a little long Jack. Background I am currently employed in the CDN financial services industry. In my first life I worked in the molten metal industry in process metallurgy. Projects ranged from the treatment of slags/dross, addition of titanum/boron compounds to aluminum, wetting agent to remove non-metallics in molten metals, sulphur removal in steel and iron and mould parting agents for anode casting machines - I visited virtually every molten metal plant in Canada with side trips to the USA, New Zealand, Australia, Mexico, Dominican Republic, Europe and the United Kingdom. The challenges that the industry provided suited me to a T but the incessant traveling had to go once my first child arrived. Now I am home most nights. Jack, I get to see my grandson 3-4 times a week. GPGI I first became aware of GPGI when I was asked what I knew about alluvial sands by a computer programmer who does consulting work for my company. I started digging, read the GPGI webpage and GPGI thread, and took a very small position. I did further digging, consulted a number of former colleagues, called Dick Jensen plus others. I, along with a few associates, started investing directly into the company in the late summer of 1997. Our investment was 6 figures (US). As part of my due diligence, I visited the mill at Hassayampa and the Oro Grande. I talked with Wayne and Sonny and questioned the lab technicians. I selected and bagged my own samples. I normally set aside 1-2% of the funds I intend to invest for due diligence, provided I have an understanding of the targeted industry. Upon my return I pencilled out my feasibility study based primarily on independent information. All of the equipment GPGI uses is standard everyday stuff within the metals industry. Determining costs, etc. of production takes a little time but its part of DD IMO. In January, 1998 I spent time in Salt Lake City visiting with the President, Secretary and legal consultant of GPGI. I also toured Auric. A further 6 figure investment was made directly into the company. That brings us to today. I along with some fellow investing friends have committed to provide additional funds (again in the six figures) As soon as GPGI is in continuous production we intend to provide sufficient funding to ensure GPGI reaches positive cash flow. Let me be clear - I and my friends are not the ... deep pocket investors that Ed refers to. Speaking for myself, I am a long-term investor who is intent to see this project through to completion. My guess is that GPGI will be cash flow positive and processing more than 25 tons a day before the end of August. Other Info 1. I have always intended to set up a trading account to take advantage of the ups and downs of GPGI but never got around to it. 2. I believe that with Chuca's Newtech the cost of producing PGM as illustrated by GPGI will result in lowering of the cost of PGM which will result in an increase in utilization which will have fundamental beneficial effect on the environment. 3. We in North America need our own in-house source of PGM's in order to ensure continuity of supply at a reasonable price. 4. GPGI capital cost to increase production into the 50-100 ton per day range is minimal. The ball mill is rated at 150 ton per day, the furnaces will be pushed at 100 ton per day but are relatively inexpensive - less than $10,000 each. GPGI will need to add some more resin columns and some holding tanks but these again are inexpensive - less than $1,000 each. I compare these capital costs with those of Stillwater's - several hundred million to get to 1,000-2,000 oz. of PGM per day. For GPGI to ramp up to the same level the cost would be an order of magnitude less. The above is my opinion only. 5. I personally view the current price of the stock as unfortunate and an unwelcome distraction for management. I, along with others will be providing to management the necessary funds to tide GPGI over until they are cash flow positive. 6. I think I would be considered a long-term investor, I am in this for the long haul. I take my hat off to all of those who have been supporting the company over the last almost 2 decades. Without you and the dogged determination of management today's opportunity would not exist. The next few weeks should be quite interesting for GPGI and its shareholders. The above is just the ramblings of an investor who does not have the wisdom of Jack, the insight of Ed or the vocabulary of Chuca. The above is my personal opinion only. As an old artillery officer, I know that as soon as we open up we become a target. UBIQUE.