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Gold and silver up. Other commodities down. This is good as miners consume oil and electricity. Our potential profit margins appear to be rising. This trading range should break free soon. I hope...Come on Moelis let's make a deal.
Cheers,
D
Hello fellow gspg investors. I am guilty, from time to time as I'm sure others are of dumpster diving for information over on the Yahoo board. A word to the wise, just stay away, the smell in the dumpster is now unbearable, ha ha. The Yahoo board appears to have been hijacked by a bunch of numb skulls so don't even waste your time. It will only stress you out. "Coincidentally" All these "yahoo's" arrived as soon as the Moelis news hit the wire. Blood in the water. Enjoy the weekend everyone.
Cheers,
Darwind
Yup this is why I'm in hold mode right now probably like so many others. I'd like to purchase more shares but I can't risk buying any more without clarification on the structure. If I knew the structure would remain intact I would be inclined to buy more. I would rather see a cash deal, perhaps a nice discount for Winfield and mystery investor on a certain amount of future gold and silver bars. I guess it does not really matter to some shareholders as it's still value coming out of the company one way or the other...But I'd rather have a simple clean cash deal and here is why....
As an investor a future cash deal shows a focus and intent on production. More shares does not imply this. In fact it implies more dilution and possible manipulation. Here lies the rub with the stock. GSPG really needs to take investor confidence into serious account. Clearly public confidence is a problem right now. Alot of folks dismiss them as a scam because of the huge float. What will an even larger float do. A cash deal could work out better for Winfield and all parties involved because it would show honest intent towards production and increase investor confidence, and thus an increasing share prince. I hope the Winfield and the guys realize this and do what's best for investors.
Sincerely,
long time gspg investor,
Darwind
Ken Moelis on the cover of Deal Maker magazine.
http://www.moelis.com/news/documents/Dealmaker_The_Networker.pdf
Scroll to the bottom and look at the six degrees of separation of Ken Moelis. Huge connections.
Donald Trump, Hilton, Bally, Caesars, Blackstone group, Kirk Kekorian, Steve Wynn, Ted Turner, Harrahs, Carlyle group, Ron Perlman, and those are just the ones I recognize.
This guy's comapny is a deal making monster. If he can't work a deal probably no one can. I think the ink is probably already dry.
Interesting. We also must remember that because Winfield is the largest shareholder and is in control of the stock I doubt he would do a deal to detriment his own shares and thus our shares. In a way Winfield is protecting the shareholders here. We are just the birds on the elephants back.
Read this on Yahoo board:
Also, if you review the debentures and debt owed to Winfield of about 14 million (including current interest due and payable), about half of that is convertible at between .01 and .02 (while the other half is at 85% of market price.) Winfield wont convert those shares until they are in the money, otherwise he takes an immediate loss and looses out on any interest payments. Thats why he would only control about 25% of the company if he converted everything at .01 as stated in the 10Q
Can he refuse cash if GSPG can pay him back? Not sure what his options truly are. Maybe because they are late in payment he has the option for stock or cash. Thoughts?
The way I see it is this. He will get his pound of flesh from gspg one way or the other. We have known about this for a while. So 14 million of value needs to come out of the company one way or the other. Still peanuts when you are talking almost 2 billion in relatively easy to get PM's. Let's not forget employee stock options that will get hurt in the event of more dilution as well. So many questions.
Yes I agree,
I hope some sort of a deal can be met. Winfield has some considerations to make. He is sitting in a strange place right now but as you say he needs to hopefully do the right thing for the company and in turn help himself. If you were Winfield what would you do? I would want my investment to move forward. The thing I don't get is this. Winfield can convert his debt into common stock if GSPG can not pay him back. But if Silver Weaton or some such entity comes along with the cash would he be forced to take the payment thus wiping out the debt? I'm sure something will be worked out. 2 billion in reserves to wipe out measly few millions is the reason. I hope he does not convert the debt in for common shares and dilute us even more. I'm not sure what his options are. I just hope as you say Winfield does the right thing for the company. In the end what ever get the ball mill rolling. Hopefully he is not a complete ass and is willing to bend a little for the common goal. In the end all parties will prosper if Winfied "does the right thing"
Cheers,
D
Someone must have some money to lend these guys so they can get the dang stuff outta the ground? Silver Weaton perhaps? "in exchange for an upfront payment" Only a matter of time now IMO.
This is from the Sliver Weaton site.
Established in 2004, Silver Wheaton has quickly positioned itself as the largest silver streaming company in the world. The company has entered into seventeen agreements where, in exchange for an upfront payment, it has the right to purchase all or a portion of the silver production, at a low fixed cost, from high-quality mines located in politically stable regions. Forecast 2009 production is 16 million ounces of silver and 17,000 ounces of gold, for total production of 17 million silver equivalent ounces. By 2013, annual production is anticipated to more than double to approximately 39 million ounces of silver and 20,000 ounces of gold, for total production of approximately 40 million silver equivalent ounces. No ongoing capital expenditures are required to generate this growth and Silver Wheaton does not sell forward its silver sales.
Silver Wheaton’s industry-leading growth profile is driven by a portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine in Mexico and Barrick’s Pascua-Lama project straddling the border of Chile and Argentina. The company’s unique business model creates significant shareholder value by providing considerable leverage to increases in the silver price while reducing the downside risks faced by traditional mining companies. Silver Wheaton has an experienced management team with a strong track record of success and is well positioned for further growth.
10Q is due
Hey Darby,
I agree. Lot's of BS MM fake out action going on. I have had orders to buy at slightly lower levels for a few days now and nothing is filling. Something is up IMO.
Cheers,
D
Just a heads up to my fellow gspg'ers. The Market Vectors Junior gold miners ETF will begin trading tommorow on the NYSE under the symbol GDXJ. This is good news not just for the minors on the list but for all gold and silver juniors as it will expose investors to this sector a lot more. I sense a junior miner mania on the way. GSPG is hopefully perfectly poised for this up and coming investment trend. It just sucks that most of the companies are Canadian and yet it still trades on the NYSE. Oh well.
Cheers,
D
http://www.vaneck.com/sld/vaneck//offerings/factsheets/GDXJ_FactSheet.pdf
The waiting is the hardest part about gspg or any
mining company in this phase. I'm sure they have a few
deals on the table all ready and are trying to do whats best for the company. At this stage it's probably best not to have any misleading PR's that may hinder a deal. So we will just have to sit tight and trust the pro's. In the meantime the clock keeps ticking...
http://www.usdebtclock.org/
We have at least 14 years
"Federal Reserve needs to cut US Dollar in half over next 14 years"
Interesting day. GSPG releases permit news and only up 3%, hmmmm. Better than a kick in the teeth I guess but I thought we might be up a little more on water permit. I suspect some selling on the news types and I think the core issue is the top layer of shares are traded back and forth amongst the MM's and day traders. The depths of our float is mostly tightly held by longs but we are not attracting new buyers so the action we see is just people shuffling shares back and forth on the surface. Problem is we need to attract new buyers. In time they will come once they realize GSPG will be pouring dore and is legit. People won't jump into the pool until they know the water is safe. They might have to pay a premium for that though.
D
Good stuff. That was a major hurdle to over come. Now financing should come along. Either a pre sale to the likes of Silver Weaton or a joint. I have been sweating bullets over the darn permit because with out water we ain't goin nowhere. Looks like we might finally be in business folks. Wow "Sigh of relief"
Congrats to all longs.
Cheers,
D
Me thinks some powers that be are trying to get gold back down to 1000 so it'll trigger some stop losses. Me also thinks gspg needs a PR or we keep sliding. I'm not a huge believer in charts but what does 0.0092 mean Darby? Buy the dips.
Cheers,
D
Any updates on permits and IG7 report?
Wierd. Does this mean the OS are going down again?
D
It could be a glitch in the system. But to have both sites showing a reduction in shares is interesting. We don't know if they have financing or not. We know nada so everything is speculation. Thanks for keeping an eye on it. Weird.
Cheers
D
Good. We need people with mining experience in charge. They have been trying to do this for a while now I think. I think this was the idea when they were trying to get Jeffrey Pontius from tower hill mines in there. IMO It was Faber who probably dropped the ball on the permits , so I'm hoping this guy with a mining degree and experience will get all the ducks in a row. I see this as a possible good thing as well. We shall see.
Cheers,
D
The Arithmetic of Gold: Why Its Price Has No Ceiling
What’s the price of the last ticket on the last train out of Paris on the night the Germans march in? Whoever is carrying the most cash will get it, and that will be the price.
Robert Merton, the great finance theorist, showed that in a multi-time-period model, investors hedge against the prospective change in the investment opportunity set. If sufficient hedges are not available the price of such hedges can be arbitrarily high. As I have tried to show in several recent articles, most recently this Sept. 15 essay at Asia Times, gold is a hedge against the collapse of America’s central role in world affairs.
What is the correct price? Central banks alone own about 4.8 million tons of gold. The world produces about 2,200 tons. Suppose that central banks wished to increase their gold holdings by 1 percent. That’s 48,000 tons or so, or more than 20 times annual mining production.
What’s the price elasicity on that sort of thing? How badly do you need that ticket out of Paris?
I’ve been recommending gold since June, for the last $100 or so of the runup, and I continue to hold my own cocktail of gold mining stocks and gold futures.
http://seekingalpha.com/article/165293-the-arithmetic-of-gold-why-its-price-has-no-ceiling?source=email
GoldSpring Acquires Additional Strategic Comstock Mineral Claims
"These claims are a strategic addition to our project," said Jim Golden, Chief Operating Officer of GoldSpring, Inc. "The claims contiguous to our Overman #1 include a mineral resource drilled by a previous operator. The package of claims also includes the under-exploited Caledonia area, and a number of high quality exploration targets that have been identified through our ongoing Comstock-wide geologic exploration program."
gold in a new bull market. GSPG stuck in nuetral. boo hiss
Nevada Geothermal Power Inc.
Check it out.
Cheers, D
http://www.nevadageothermal.com/s/Home.asp
Reminds me of Blinky the three eyed fish from the Simpsons. ha ha. IMO if there are any other uses for gspg land other than mining it would be geo thermal energy. In the future gspg might want to get off the grid and generate there own energy from the tremendous steam and heat located under some areas of the property. 99% of Icelands energy reliance comes from geo thermal. GSPG could probably become self sufficient and sell the rest of the energy back to the grid. That is if they can ever get going.
Cheers,
D
I think we might get minimum 3 pennies right now in a buy out so that's better than nothing I guess. But personally I would be disappointed. I have not been holding on to this stock for over two years for that to happen. I'm hoping gspg can take this to full potential. GSPG should get the dores poured some time in the next year or two. Then pay off the debt and do some more exploring of the comstock before selling the golden goose. Too much potential to sell short now. A joint venture is more likely IMO. The comstock has a history of dummies who sold out too soon and never knew what they had. George Hearst slipped in and bought the mines for a song back in the 1800's. The idiots whole sold probably kicked themselves. We shall see.
Cheers,
D
http://www.mininghalloffame.org/inductee.asp?i=10&b=inductees.asp&t=n&p=H&s=
Gold is $1017 and Silver is $17.38
Multiply that X our estimated reserves. Then multiply it with
gold at $1250 or higher. The road will be bumpy and long but the destination remains the same. Faber and Golden if your reading this. Don't mess it up! Keep your eye on the big picture. Let's get this ball mill rolling. To da moon boys!
Cheers,
D
Looks like we have some sell into the news syndrome
going around. Day traders are so predictable. Oh well,
to each his own I guess. ha ha
Cheers,
D
Sweet! Good news
Thanks,
D
Hello everyone,
I'm back from vacation. Looks like my gold prediction is coming true, cool, and China being the main player means this gold bull probably has plenty legs yet for years to come. Look for a high gld price just before Xmas, then I think a little pull back maybe. I'll be probably holding gspg until this puppy gets up to full potential. It will be tough to hold that long but I just finished reading Comstock Lode by Louis L'Amour, not a bad book. I could not help but attach some of the characters in the book to the characters we know today. Anyway, if it makes you feel better the share holders come out pretty well in the end of the book, ha ha. Been here for over 2 years and still holding. I guess I should have added at sub penny but the silence is deafening from Faber and the lot so I was just kind of forced to hold my cards. Oh well, hopefully the silence means something positive is in the works. Still a gamble, but every dollar that gold and silver go up makes gspg's reserves go up big time. I will post any relevant info when I come across. Best of luck fellow investors. Keep your eye on the ball.
Cheers,
D
Me too Gltiich,
This is BS. No more for me.
Peace out.
The MM's have taken the floor out and the 15% drop today is a result of people who said they would dump if we could not hold .01. The MM's have officially put us in the gutter. I can not help but think it's intentional. I wish I could say there was a reason to double down and cut my loss but it's not worth it for me as I might have better luck recouping losses elsewhere. We are now officially in jungle town. I'm moving on and hoping gspg can pull a rabbit out of there ass so I can recoup. Very disappointed in management right now for there lack of communication.
Ouch! I'm very surprised by the break below 0.01. I'm sure it triggered a lot of stop losses. Intentional? Also people will now be less inclined to buy in as some people don't invest sub penny.
Very dangerous territory right now.
Even though it might be a good idea to buy at these levels I will not touch it without some very positive news or a firm
support over .01. This is just the way I role.
I agree. Yahoo board is the twilight zone. Let's try to not let that garbage leak onto this board. We need level heads. I'm confident that gspg is probably working on a plan so that goes without saying anyway. Patience is the key here. Anyway back to the big picture. It appears gold and silver are consolodating at these levels. I think the miners should slowly be creeping back up from here. Hopefully gspg will catch some wind from this and 2010 will be a great year.
Cheers,
D
Russia, China to Promote Ruble, Yuan Use in Trade
une 17 (Bloomberg) -- The leaders of Russia and China agreed to expand use of the ruble and yuan in bilateral trade to lessen dependence on the U.S. dollar a day after they took part in the first summit of the so-called BRIC countries.
“We agreed to take further steps in this direction, including, perhaps, by adjusting contracts and laws that already exist,” Russian President Dmitry Medvedev told reporters in the Kremlin today after talks with his Chinese counterpart Hu Jintao.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aSTmuCr.RD88
Well, that happened alot quicker thn I thought it might. The run on the dollar has begun and gold will be going through the roof soon. Go get some physical gold and silver now!!!
China sells US bonds to 'show concern'
A decision by China to reduce its US Treasury holdings suggests concern about the US attitude towards its economic woes, Chinese economists were quoted as saying in state media Wednesday.
The remarks, coming after US data showed a modest decline in Chinese investments in US government bonds, were in contrast to an earlier statement in Beijing which had said the recent sell-off was a routine transaction.
"China is implying to the US, more or less, that it should adopt a more pragmatic and responsible attitude to maintain the stability of the dollar," He Maochun, a political scientist at Tsinghua University, told the Global Times.
http://www.breitbart.com/print.php?id=CNG.6cc88b76aff9be3f90f62526a3107ec9.31&show_article=1
Suitcase With $134 Billion Puts Dollar on Edge:
June 17 (Bloomberg
Two Japanese men are detained in Italy after allegedly attempting to take $134 billion worth of U.S. bonds over the border into Switzerland. Details are maddeningly sketchy, so naturally the global rumor mill is kicking into high gear.
http://www.bloomberg.com/apps/news?pid=20601039&sid=a62_boqkurbI
The wierd thing is tarp is worth almost exactly $134 billion
This in my opinion could be Japan exchanging bonds for bullion in switzerland on the sly. Or...
There needs to be a buyer so a more plausible senario is this. The US knows the treasury bond auction will not go well. They need to line up buyers before the auction in order to keep the dollar strong and the bond yields low. The US has Japan over a barrel because they are up to there necks in debt. So they make a deal. Japan will buy more treasury bonds but with FED money. The FED buys back the 134 billion and monetizes it. Japan coninues to buy new treasuries with the cash in a swiss bank account. China buys more bonds because Japan is buying more bonds. China is probably feeling ripped off right now. This will not end well and it could be a WW1 franz ferdinand type event that starts a run on the dollar. The next treasury auction could be a disaster if this
is not resolved.
Brutal day. No particular reason I can see for us to be down here. I'm down quite a bit now but at least it's good to see strong support down there near the gutter. Someone picked up a good deal. Anyway, I'm leaving for vacation so I won't have to watch this stock for a while. It will probably go to .o6 like it did last time
I took my eye off the ball. ha ha. Oh well,best of luck to all and I'll check in when I get back.
Cheers,
D
Hey Joshkocses,
I still think the second wave is going to hit. Option Arm's and Alt A's are just starting to reset now. Unfortunately there is alot more #$% to hit the fan. Short term the Dow might go higher but long term the Fed does not have the bullets to kill inflation. The current stock market rally IMO will be another bubble created by the Fed as would be savers are now pushed into the market because of low interest rates and a weakening dollar. I still think long term this will be looked back on as a bear market rally. Also the DOW is trading at ridiculously high PE ratio's right now. Enjoy the ride while it lasts but let's be careful out there folk's. Gold and silver for the long haul IMO ( ;
Cheers,
D