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I thought that was odd as well that LLEG was not mentioned. But even so, they would not own a majority interest in NewCo - but only a minority interest in the new company (if any at all). I'm certain that Accenture has the controlling interest (over 50%) which is why they are mentioned, but it may not be required in the report to note all share holders of NewCo - which could be why all other parties were left off. (if there are other parties such as LLEG.)
Everyone needs to maintain calm and use their intelligence. LLEG wouldn't sell out of Berlin for zippo. We either have a stake in NewCo or were received some form of compensation.
It is a wait and see game right now. The results could blow the roof off this thing, or could cause it to fizzle out.
I agree with lilpuppy that we need to be informed of LLEG's equity position in NewCO, if anything... My thoughts are that as soon as the deal is final we will get a PR. Hopefully we know exactly what LLEG received for selling LBB to NewCO.
Realistically, BigBucks is probably right and I formed the same opinion last night after reading the documents on the NHSEC. The big question will be, what is our new ownership percentage in NewCo, and will it equal the same as previous (37.5%). If it is a lower percentage, what additional benefit has LLEG received (additional cash, negated risk, etc) The CEO isn't dumb, and I don't believe he will sell us down the river, but anything is possible. Most likely LLEG's position remains the same for Berlin or has decreased somewhat to bring in financing. Although, even with reduced ownership it could bring in a no cost/no risk/high profit significant (many millions) cash flow stream for 20+ years that make the new deal worth it.
I'm holding my shares tight - lets wait and see what transpires when the new information hits.
Good luck to all.
I agree, Updated 43-101 or Debt Restructure next up. I think we'll see the updated 43-101 by Friday as the company stated it would be released in early August. Debt Restructure may be in the same PR, or it will follow up close behind.
I'm hoping to see the updated 43-101 next, and Debt restructure by the end of August with a joint PR for production financing. Exciting times ahead! I'm beginning to trust this new management more every week.
IMO, anyone in now will see a huge return by next summer! This stock was at .06 cents pre-split ($12 post split) with just hype about production. I think we'll see that again, or higher by next summer... if they meet their goals of production by Spring 2011.
Exciting times ahead!
Looks good to me Matt. May want to create a sticky of the P/E potential with your cost estimate.
I think it's clear that the market is waiting on production news for this stock. The name change got people excited because it appears that company is taking steps to turn itself around and get into production.
In my opinion, we won't see sustained gains until we get production news such as production financing, final permits, and start of production.
It is possible that an update 43-101 could create sustained gains, but I'm not 100% confident it will... investors are interested in cash flow, plain and simple.
Who's trading this stock? My TD Ameritrade account is still not updated to the new symbol. - So I wouldn't be able to sell if I tried.
Its a SWAG
I agree...
It is nice to see it run today.
Pretty darn good. It will be interesting to see what happens with the additional Mass conversions.
If they can maintain a limited overhead staff and add an additional plant or 2 in the next year we could be in for a wild ride.
I for one would like to see them begin buying back shares once they begin adding revenue. Although the OS might be too high to make this feasible - A R/S is probably in the future (2-3 years)
Thanks Matt, I updated it with a wild guess at 20% profit after expenses.
Cheers
It looks like a plan is being laid out to turn this company around.
- Next we'll get a PR on debt restructuring and new O/S.
- Then a new 43-101 with results on additional holes.
- Then production financing.
- Then a return to production.
Could be an interesting Christmas for this stock if the above happens in the next 6 months. I sure hope the company will deliver.
I think we would need to calculate this by 35%, as LLEG only owns that much of the Berlin plant.
So $77,710,288 * .35 = $27,198,600 revenue per year
Wild Guess of 20% profit after expenses = $5,439,720
$5,439,720 / 3 billion shares = 0.0018 per share
Give a P/E of 100 = $0.18 PPS
Still a great investment if Berlin comes online!
I certainly agree with your frustration, although it makes sense if they are truly going to open production within the next 8-10 months and release a revised 43-101 showing additional gold & silver.
All confidence in management is basically on life support as seen by the share price & volume. My hope is that this CEO is honest and can get the job done on production. Cashflow is the only thing that will save this investment. If production is delayed at all, this stock is toast.
I suspect most investors still in GSPG are like me and are not selling, but are waiting to see if the new CEO will deliver on production this year. If they sense more delays and games, they're out.
Although you know what they say... "Hope is not a strategy."
It will be interesting to see what the stock price will be this fall, if Berlin is approved and 1 or more of the Mass projects gets acquired... especially with no dilution for over a year and counting...
This is one stock I own, that I could realistically see a massive run up. Let's hope for the best.
Cheers,
The 'D' is gone now. Ihub is still showing it, but it was removed today.
The 'D' should be removed sometime next week.. the 20 days spelled out in the PR pegs the date on Tuesday, July 6th. IMO, it will probably be that day.
Next week could get exciting. There is a better than average chance we will receive more info on the debt conversion, bridge loans, and new O/S, etc, etc. If we hear something on production financing, it could really get interesting.
Cheers and a happy 4th!
IMO, VisaDoc is telling the truth. The yahoo board is a zoo, but there are a few honest posters over there. Visa is one.
I suspect most people holding GSPG are cautiously optimistic. I for one am happy the the stock price has held up so far, but I'm guessing that most people who were going to sell sold pre R/S. Those holding and those waiting on the sidelines are watching to see if GSPG will finally meet its promises to their investors and begin meeting their objectives as defined in their PR's/SEC filings.
I was a bit disappointed when I first read yesterday's news, thinking GSPG was back to its normally form of financing. (and nothing had changed). On second reading, it does appear that this is only to get them to production financing so that they can begin creating cash flow. I'm also encouraged to see Moelis involved in the financing.
This I suspect is what we're all waiting for. Will GSPG get production financing, complete a new 43-101 report adding new holes, begin production, and minimize dilution during debt restructuring. If those 4 things happen in the near future, we're golden. I'm betting they will.
Cheers.
Mojo,
They turned it off a year and 4 months ago. Haven't diluted since, due to a JV.... company is legit.
That is very possible TAP. Basically 1 of the 3 obstacles is now resolved for approval by the NH SEC and success for LLEG. (And IMO it was the biggest!)
1. PPA agreement - DONE
2. Enough Wood
3. Loop Capacity
Wood sustainability is still in question, but I believe the Landvest study resolves this - although it is up to the SEC.
Loop capacity is still a concern, but I believe the SEC will approve the permit, even if not resolved. The plant can run at lower capacity until the loop is upgraded.
It is certainly looking like the naysayers were full of hot air.
Cheers!
Massive News!! PPA was the biggest obstacle that could have stopped LLEG in Berlin. Now it is resolved. Makes for a good day.
Brungy, I'm confused on why LLEG would need to conduct and pay for an independent study on the wood supply. Haven't they already done a 3rd party independent study as apart of their application to the NHSEC (conducted by Landvest)?
Why would this independent study be unacceptable? Is it fraudulent or missing certain data/criteria required for the NHSEC application? If it was missing criteria, I would think the SEC would have rejected the application for being incomplete? I could be wrong, but I believe the study will stand as is, unless a second 3rd party study contradicts it.
It appears that Clean Power has a study as TAP mentioned, but they may be taking into account different distances from the plant for the wood basket. (I.E. 30 miles compared to 120 miles is quite a difference as BigBucksFI mentioned) Here in Wisconsin, where I live, they ship 'tree trunks' hundreds of miles by train and it doesn't appear to be a problem.
Anyhow, you could be right, but I would think it would be NH who would need to order & pay for a study if they felt the Landvest study was inaccurate. Maybe they would charge this to LLEG, I don't know? Seems odd to me that LLEG would have a 3rd party conduct a wood basket study as part of the SEC application, and then require them to have another 3rd party conduct a second study - just to be safe.
Discreet, Unless I'm mistaken, only Laidlaw has a independent study showing that their is enough wood for the biomass plant. (I believe it was the Landvest study) The only people who have seen this report is the deciding committee.
I don't know how this process works entirely, but unless another party puts forth a paid independent study of wood supply - or NH pays for a second independent study LLEG report will stand.
Just saying there isn't enough wood in testimony doesn't hold water to a 3rd party professional study - IMO. I would assume that the committee would have to provide proof/backing that their isn't enough wood if they were to deny the permit on this information. This would require a second 3rd party report conflicting with the LLEG Landvest information.
This is my opinion, I could be wrong.
Any thoughts on what PR's might be next to support the share price after the split (if any)? Some thoughts come to mind...
- release of possible holes with high gold/silver content
- financing for production
- 43-101 in late summer
- final 2 permits - approval
- ??
I would think some information will need to be presented very close to after the split, or the share price will sink... Thoughts?
thistime, I understand your concern. It is a concern if the original amounts were false or misleading.
One question I have... did the original amounts include drill results that this official 43-101 does not? It does appear that they purposely left off some of the results for some reason, possibly to complete a second 43-101 in the future to include new drill results at a later date and give future support to the PPS?? Just speculating...
Right now, I'm just happy they followed through with something they promised.
I'm thinking like you Seeker. I also have my doubts, but see the 43-101 as a step in the right direction by the management fulfilling their promises.
If the new management begins delivering on their promises with financing and production by early 2011, with minimal dilution, etc. I can't imagine the market cap staying near 20-25 million.
We have new management now, and they have laid out their plan clearly to us. Let's see if they deliver.
Cheers!
With the conference today, it should be a interesting week.
Wouldn't it be sweet if they release financing as well pre R/S?
I don't think that will happen, but it is great news that they released this pre R/S. It is nothing but good for the current shareholders...
Excellent news today! If we see financing soon, you can kiss the 25 million market cap goodbye. Bring on production!
I'm sensing that the new management is interested in getting this done quickly. (Production) Should be a fun couple months.
Cheers!
Maybe I should have bought more shares ?? :) I'm only holding a couple million.
TAP, unless I'm incorrect the O/S hasn't increased in over a year. The reason for the drop was most likely due to restricted shares from previous years being sold. So to us it appeared as if the company was selling shares, (and they still could have been) but instead it was more likely previous investor(s) as the CEO had stated on this blog.
It would be nice to see a PR, but I am happy to see the O/S unchanged. Someone is paying for all these permits, business trips, etc. It is pretty obvious this is due to $$ received from the JV arrangement and not A/S being sold into the market.
If it wasn't for the JV arrangement, I would be very nervous about LLEG getting the job done. I'm still nervous about a few open ended questions that I believe will soon be resolved. (PPA, wood study, full funding, etc) I'm just not as nervous as I would be if LLEG were on their own.
Cheers!
Davey, Thanks for your reply. You may be right on intentions of the company. I hope that is not the case, but i am keeping it the back of my mind throughout this process, just to be safe. We'll see what happens here pretty quick.
Cheers!
As I see it, there are most likely 3 ways this could play out..
1. Davey is correct, and they will not mine and will continue to push out the date, continually selling shares from the AS. This would loose all confidence and tank the stock 80% as he has indicated, pushing the market cap from a low 25 million to 5 million or less. (essentially it is just a scam company.)
2. They will release some nice news at the same time as the R/S, dilute to pay off their debt (but not dilute significantly past the new OS), announce financing, and begin mining by early 2011. This should stabilize the stock and we could see the market cap increase from 25 million up (as Extreme4 as suggested)
3. The will not release news at the same time as the R/S, and we will see a significant drop as they dilute to pay off their debt. (somewhat bad for the longs) They will eventually announce financing, and begin mining. This would eventually stabilize the stock and bring it back up to 25 million in market cap, and then increase from there in 2011-2013. (If your holding long term, you'll be ok, but will miss out on big gains)
If you believe the company is a share selling scam, then you fall in item 1. (frankly, if you believe item 1 then I would be surprised your reading this post and are watching this stock at all. you have to at least believe something else is possible) I'm hoping for item 2, as I hold shares, but it is looking like item 3 is in store for us (although I hope I'm wrong). Those that sold and are planning to buy in later, as some here have suggested, would make out big on item 3.
Time will tell... I'm hoping Extreme is right and something resembling item 2 plays out.
Cheers and best luck to all!
Davey, do you mean 50 mill pre-split? There will only be 18 mill shares post split... I think you mean 250k a clip.
Anyhow, It does although appear they are going through with it before releasing any significant news to increase the PPS before the split. :( New investors will make out big if they follow through with their plan. Old investors could still do OK, just not as well as hoped.
If they dilute heavily as feared, any new significant news could be swallowed up in dilution. Let's hope not.
I guess we're all still here invested because we believe that GSPG will mine after this reverse split. If we thought it was all for show we would sell and move on. Maybe the smart ones have sold and are waiting to get back in depending on if GSPG really mines in 2011. (Have to admit, that is what I've been contemplating)... Anyone who has been here a while has to wonder if it will really be 2011, and not 2012, 2013, 2014 etc, etc, etc.
Anyhow, Phx comments make a lot of sense, and I'm betting with the people they have on board that they do mine the gold. (Hopefully with smart dilution). To dilute back to 4 billion with no mining would be suicide for the guys holding common shares, which includes a lot of directors, and soon to be Winfield.
I'm betting and trusting the new CEO that 2011 is for real - make it so GSPG!
Hope he doesn't make me a fool.
Cheers!
A miracle PR would be great, but all this stock really needs is a decent PR without any heavy selling into strength (which has particularly killed this stock in the past).
I can think of 3 pieces of news that would cause those waiting on the sidelines to be kicking themselves once news released, as they would be chasing the stock upward...
1. Ink on one of the 2 MA deals, with the project bringing in revenue.
2. PPA agreement for Berlin
3. JV news of revenue received, as indicated to us as a possibility back in the end of Feb, but no PR or blog entry, etc.
One of these 3 will happen shortly, IMO ... and will create a new base price, all be it, depending on if there is no heavy selling into the PR.
I agree with scotyler, this happens routinely...
I've also had a similar situation as a board member of a nonprofit organization in the building of a new structure. The original engineering firm's work was subpar compared to the secondary work of another design/build contractor. We went with the second design and had a disagreement on $$ owed to the original engineering firm. We eventually settled before going to court.
All in all, it was a blip on the radar, and essentially was a nonissue. I suspect this will be a non-issue for LLEG. Worst case scenario, they have to pay for the engineering of the original firm, it will in no way stop the project, IMO.
Agree, these 4 questions are the same I have, although I am fairly confident Laidlaw "Got Wood." Can't quite figure why No. 4 (Mass. Plant) has not been completed yet...
Lets have a discussion on why we have not heard anything about the payment from the joint venture that apparently will make LLEG profitable?!?... Here are some thoughts/options I have...
1. The 'end of Feb' was an estimate based on a milestone LLEG had to reach on Berlin to receive payment. (this milestone hasn't yet been reached)...
2. Or, LLEG has received payment but has not issued a PR for some reason.
a. Mike is waiting for the selling to stop by a significant investor.
b. Mike doesn't think it is newsworthy.
c. Mike is waiting to issue this PR when a Mass. plant is inked.
d. Some other reason I can't figure out...
Any other thoughts out there?
On a positive note...
If the CEO is waiting to release a PR until the restricted share selling is finished, (as Gambler mentioned could be a possibility a few days ago) then we will all be very happy for it as the stock shoots up with little resistance.
As weird as it seems, the delayed PR may be in our best interest, either intentionally or unintentionally. We will know soon enough.
Cheers!
Digi,
Do you think all the restricted shares have been dumped? or do you believe more are coming? It seems that most of the selling has been due to these restricted shares hitting the market. If this stops, then we should see a real increase in the share price once a good PR hits. (Keyword = should)
Cheers!
I think your right. The company needs 3 things right now to put the PPS in the right direction, ie. UP!
1. Strong PR, hopefully showing new revenue.
2. Unchanged Outstanding Shares at time of PR and after.
3. The End of Restricted Shares hitting the market.
I suspect it will continue to bleed if any of the 3 are missing.
Good news, is that it appears that all 3 of these can happen sometime this month... cross your fingers.
No.3 is the big question mark, I believe the other 2 have a reasonable chance at happening here shortly...