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Golden Phoenix Reports on Ashdown Mine Development and Molybdenum Production
Thursday September 6, 8:30 am ET
SPARKS, Nev., Sept. 6 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc.
(OTC Bulletin Board: GPXM - News) is pleased to report that operational efficiencies
continued to improve through the second quarter as production capability was
expanded at its majority owned Ashdown Project LLC business unit, operated through a
joint venture with Win-Eldrich Mines Ltd. Development work at Ashdown has been
ongoing, with full-scale production from multiple stope headings targeted for early
2008.
During the second quarter of 2007, the Ashdown Project LLC posted sales of
molybdenum concentrates totaling $4,466,395, which represents an increase of over
$3.6 million, or 460%, from its first quarter sales. Operating costs and expenses
for the second quarter were $2,276,789, compared to $1,680,068 for the first quarter
reflecting an acceleration in budgeted staffing from approximately twelve to
twenty-four miners and from approximately nine to eighteen milling and support
personnel, as well as other costs related to the ramp up in production.
The advancement in development at both the mine and mill resulted in a total of
144,882 pounds of molybdenum (Mo) being sold in the second quarter at a cost of
$15.71 per pound as compared to 64,942 pounds at $25.87 per pound during the first
quarter. These per-pound calculations represent fully loaded, total costs that
include ore production, barren-rock development, general and administrative
expenses, accretion, depreciation and amortization expenses.
The second quarter earnings demonstrate that the systematic ramp-up beyond initial
budgeted expenditures over the past six months is resulting in a transition to
profitability. As the Project evolves from a focus on infrastructure development to
concurrent mining of multiple stopes, an increase in the production and sale of
concentrates, together with a decrease in the Project's total cost per pound is
expected. Until then, ongoing development work and equipment upgrades and repairs
during the current third quarter are expected to reduce financial performance and
the rate of expanded production in the third quarter, but will position the Project
for sustainable full-production rates later in the year.
The Project's fleet of rolling stock has recently been expanded with the acquisition
of a second 10-ton haul truck and a third 2-yard mucker. These additions allow for
rotation of equipment through a preventative maintenance program designed to
increase equipment life, availability and output. By maintaining high safety
standards, implementing preventative maintenance and upgrading equipment, lower unit
costs and higher rates of production are expected.
The grinding circuit's ball mill was taken off-line in early August to replace worn
portions of the protective rubber plates that line the inside of the drum.
Preventative maintenance items were moved forward and have been performed in
preparation for sustained 24/7 operation once the custom fabricated replacement
liner has been installed, scheduled in the first part of September.
This unplanned down-time has slowed the increase in the rate of production for the
period of time effected. In return, it has provided the opportunity to implement
improvements to the flotation circuit, including design and construction of a system
to re-process tailings in order to recover residual moly from the tailings pond.
Following several days of trial operation, these innovations are resulting in moly
recoveries from the tailings pond ranging from 45-94%, with an average of 83%.
Due to the exceptional head grades of the ore at Ashdown, the recycled tailings
deliver feed ranging from 0.2 to 0.9% Mo (with an average of 0.51% Mo). Such grades
are higher than most primary ore from comparable moly operations, allowing recovery
of between 500 and 1500 pounds of concentrate per shift. Safety procedures require
that hydraulic suctioning of material from the tailings pond occur only during
daylight hours. Lot 11 will be sold this week with half of its 12 Supersacks
comprised of moly recovered from the tailings pond.
As anticipated, concentrates produced from the tailings contained lower Mo and
higher copper (Cu) compared to concentrates produced from fresh ore. No suppression
of Cu was attempted since the tailings were run for quantity of saleable material,
with the quality of the product being a secondary consideration.
Today gold closed down $1.40 at $680.90 and silver closed down.11 at $12.16. For two days gold is up $4.30 and silver is up .14.
Post by "Birdwatcher".
MINE VISIT-
Sorry to take so long to post this but here is what I learned on my visit to Ashdown and the GPXM office...
I recently returned from a trip to Nevada to visit the Golden Phoenix Minerals corporate office as well as the Ashdown property. This visit proved to be very interesting and I left feeling very encouraged about the current condition of the company as well as its future potential. I began by stopping by the corporate office in Sparks, Nevada where I was able to talk to several people who were working there. I really felt a sense of optimism and a positive attitude around the office as well as in the people I talked to.
I was able to talk to one of the geologists and also a geochemist who work for GPXM and was very impressed with both of their knowledge of the mining industry and the properties held by GPXM. They were both very excited about the potential for Ashdown as well as Mineral Ridge and expect to develop both of these into very profitable and efficient mines. What they told me is that the potential for Ashdown is huge as most of the property remains unexplored and most of the exploration done in the past was only for gold so there is much to be learned about the moly deposit. So far, what they have found in the small area where mining activities are presently focused is just a small piece of the property and this deposit is most likely much larger than what we know right now. They explained that a deposit containing this high of grade is not normally isolated and is most likely a part of a larger system which could massive. More of the gaps in their information will be explained by further drilling on the property, specifically focused on moly. This is planned for the future but it takes time to get good drilling equipment and crews.
The company also feels there is great value in Mineral Ridge and it sounds like this will be their next focus for development into a producing property. This property already has a proved resource of 200,000 ounces of gold and most of this property is also unexplored so it can, and will, be drilled in the future. I believe they understand very well the mistakes of past operators with this property and should have no problem putting MR into profitable production on a fairly good sized scale. Mineral Ridge has several deposits which can be mined by open pit, underground or a combination of the two. This is all being looked at right now to determine the best plan.
Several hours later I left the office and drove to Winnemucca in order to be closer to the mine for my visit the next day. I was amazed at the time I was able to spend talking to people at the company and their excellent attitude toward me as a shareholder. I can assure you that shareholders have not been forgotten by this company.
The next morning I drove the Ashdown mine and mill where I was met by the mill manager. The first thing I did was take a look at the tailings pond by climbing up the ore stockpile in order to get a better view. This pile was very good sized and I was able to pull a few small samples of very high grade moly from this pile, and trust me there was no shortage of good high grade moly ore sitting around. Next I was given a tour of the mill equipment and the process that was used to extract the moly from the rock was explained to me as we walked along. This was extremely interesting and there was actually moly being milled and bagged on the day I was there, which was part of the reprocessing of the tailings that was being done while ore was being stockpiled. Everything seemed to be working very well and I believe they are getting pretty good at recovering moly. I was also able to meet Don Prahl who was kind enough to come over and meet with me. He was very enthusiastic about how the Ashdown project was coming together and the great future potential of this property.
Next I drove up to the mine where I got to meet with Craig Patrick who talked to me about the amazing quality of the deposit at Ashdown as well as the great potential he and others had to build a great company at GPXM. He felt very strongly about the quality of the properties owned by Golden Phoenix and with the vast amount of experience he has in the mining industry he has seen a lot. Craig’s knowledge of mining and mining properties was amazing and he seemed to be very excited to be working for Golden Phoenix because of the great opportunity to build up a company. Unfortunately I was not able to go underground into the mine as they were busy that day. It was explained to me that daily production from the mine had increased significantly over the past few weeks and production should continue to increase in the future and full production should be achieved no problem. Things should really start moving faster this fall as most of the bugs have been worked out of the mining and milling process and more systematic processes are being put into place which will help to create a smooth and very profitable operation.
As I left I was amazed at what has been accomplished thus far at Ashdown and how bright the future really is for Golden Phoenix. They have the right people and the right properties at the right time in the commodities cycle to really do great things over the next few years. I am so glad I took the time to visit the property and I am really excited about what is in store for shareholders in the future. For anyone who has been thinking about making a trip to see Ashdown for their self I would highly recommend it. When I returned home the price of the stock was getting killed but instead of being worried I just shook my head at the stupidity of the market. This company has not yet been taken seriously but soon it will be impossible to ignore the change that has gone on and will continue to go on. It really put my mind at ease that I had put my money in a quality company that will do very well in the future. So, for anyone attending the shareholders meeting and touring the Ashdown property you are in for a treat. There is nothing like going and seeing what you have your money in and getting that gut feel about what is there. For me it was very good and I am truly excited about this company and where it is headed.
Gold is up $17.20 in the last two trading days.
Today gold closed up $9.10 at $682.30 and silver closed up .25 at $12.27.
Mboomer. I believe that there are a lot better mining companies out there but this could be a good turnaround play. The company had a net profit last quarter for the 1st time in three years. They are not in a very good current condition and I believe that they are still leveraged to a small degree.
Today gold closed up $8.10 at $673.20 and silver closed up .26 at $12.02. For the week gold is up $5.80 and silver is up .09.
Today gold closed down .50 at $665.10 and silver closed down .05 at $11.76.
Today gold closed up $1.50 at $665.60 and silver closed up .04 at $11.81. So far this week gold is down $1.80 and silver is down .12.
Today gold closed down .80 at $666.60 and silver closed down .22 at $11.71
Kevin, it seems as though very few read the financial statements. From the emails and PM's that I get I find that many investors are not able to understand financial statements and what they convey to the public.
Today gold closed up $810 at $667.40 and silver closed up .28 at $11.93. For the week gold is up $11.10 and silver is up .20.
oops, I failed to mention that I do hold this stock. I've been holding held SHSH since it was a mom and pop company a few years ago. I sold about 40% of my shares on June 14, 2004 for a nice profit and return of my initial investment. This stock only has 18+ million shares so it is hard to get a decent amount. I have been waiting for them to start up the silver mine which was their only area for a long time.
Shoshone Silver Mining (OTC:SHSH) experienced an 8% drop in share value Thursday combined with only 3,000 shares traded. On August 23rd they announced that quotations for its common stock now appear as of yesterday on the National Association of Securities Dealers' OTC Bulletin Board. This has moved us at PinnacleDigest to review Shoshone Silver Mining and their main properties. Our purpose is to inform our members of breaking news across the markets as well as to research specific companies in detail. We will be focused on this company's immediate future developments as well as their position within the sector most influencing their success. To read this article in full and to learn more about our expanding, multi-purpose online financial magazine, visit us at www.pinnacledigest.com.
MUMBAI (Reuters) - India's gold demand picked up on Friday as traders have started accumulating the yellow metal with the busy season just around the corner, dealers said.
"The demand is improving now because we have a season coming ahead with Raksha Bandhan and Ganapati festival," said Rajiv Popley of Popley & Sons, a Mumbai-based jeweller.
This season is quite strong as far as the gold market is concerned, he added.
India's August-to-December busy season on account of Hindu festivals, weddings and the harvest season usually sees the maximum amount of precious metal sales all around the country.
However, a dealer in a bank in Mumbai said the demand would not be as good if the prices move above 9,000 rupees.
Gold prices were comfortably below the psychological level of 9,000 rupees per 10 grams which, dealers said, was a good sign for buyers.
On 3-31-07 GPXM owed over twice as much as the entire company was worth. Now the company has a current ratio of 1.51 which is very good and a debt to equity ratio of .737 which is not good but is tremendously better than the negative net worth just three months earlier.
Not a problem, Steve. I have been going over the past five years of paper manipulation by the Central Banks and remaining reserves and I believe that they may be about to ease up. There is a very good chance that both gold and silver will have a dramatic increase in price between the middle of September and the middle of December. According to my charts there have been nice increases in the price of gold and silver over the past five years during those three months. The supply/demand imbalance, shorts and hedges being covered, the worldwide economic outlook and past history tell me that we are in for a nice ride. I believe that now would be a very bad time to sell any precious metals.
Kevin, I have no idea what is happening but I have seen this type of action in the past with other stocks. The O/S are not out of line for a producer. If they become a major player in the molybdenum market the O/S will not mean much and they still have what looks like some very good prospective gold and silver plays. I have made the decision to hold at least until the next quarter is filed.
Today gold closed up $1.00 at $659.30 and silver closed up .07 at $11.65.
This morning gold and silver were both up nicely in London until the New York market took over. When the New York market opened gold was trading at $665.90 and dropped in NY to $658.20. Silver was trading at $11.89 and dropped to $11.62. Gold is currently $660.00 and silver is $11.66.
Today gold closed up $2.30 at $658.30. Silver closed up .14 at $11.58 after being up .45 earlier in the session.
161 TONNES CUT FROM HEDGE BOOK
Record gold hedge book fall in second quarter
The elimination of Newmont’s and Lihir’s hedge books, with other companies including AngloGold Ashanti, and Buenaventura reducing their forward positions has led to record de-hedging during the second quarter of the year.
Author: Rhona O’Connell
Posted: Wednesday , 22 Aug 2007
Kevin, nearly all of the huge hedges and shorts on gold have been covered. There are a few left but not nearly the amount a year ago. There are still huge short positions in silver by the paper players. I believe that silver is being held in check until the Central Banks can get their money back which means that they must cater to the paper players.
American Bonanza Gold Corp. (BZA.TO) said Tuesday excellent results were obtained from the drill MD-07-20, which contains 44.3 grams gold per tonne over 1.0 meter, within a 28.4 meter interval with an average grade of 2.3 grams gold per tonne. The drilling is continuing in the La Martiniere property in Quebec. Brian Kirwin, President and CEO said that the La Martiniere gold zone continues to shape up very well.
Today gold closed up .50 at $656.00 and silver closed down .27 at $11.44.
No argument from me. Over the past 54 years of investing I have found out that many things that happen within the market does not make sense. A company can be on the verge of bankruptcy and the stock can do very well. And I have seen on many occasions where a company can have the best quarter or year of their history and still have the price go down. This is the life when dealing with small cap stocks.
GPXM has some gold mining claims and plan in the future to mine that gold but presently they are mining molybdenum and all sales from last quarter have been from that metal.
Sorry Foxy but that news is a little old. I've known about those rules for over 50 years. Where did In say anything about any inside information. I simply said that I know Ron have met with him and believe in him. Careful with your assumptions. You are about to stain your credibility.
Atotalbum, I didn't get worked up. Only pointed out that she was looking at the wrong section of the financials when she made that statement.
Kevin, the 10Q came out late in the day. I expect a nice increase in the share price tomorrow.
Don't but it, just watch it. The company has grown more in the past six months than it has in seven years. I have been to Nevada and the main office and have had meetings with Ron the president. The company is for real and is just getting started.
Foxy, what you were looking at is the six month totals which is not indicative of the turnaround that took place during the last quarter. Look at the 10Q for the past quarter. The company was still struggling to get turned around during the 1st quarter but that is in the past.
Foxy, the bottom line net income for the quarter was $1,058,688. Show me where there is a loss.
GOLDEN PHOENIX MINERALS, INC.
Condensed Consolidated Balance Sheet
June 30, 2007
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
5,863,261
Receivables
1,090,456
Prepaid expenses and other current assets
265,721
Materials and supplies inventory
69,112
Marketable securities
241,267
Total current assets
7,529,817
Property and equipment, net
1,352,203
Other assets:
Restricted funds – reclamation obligations
2,184,511
Prepaid bond insurance premiums
277,276
Deposits
60,991
Total other assets
2,522,778
$
11,404,798
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
581,391
Accrued liabilities
545,326
Current portion of severance obligations
277,962
Current portion of long-term debt
320,392
Production payment obligation – related party
663,093
Production payment obligation
1,974,456
Amounts due to related parties
612,764
Total current liabilities
4,975,384
Long-term liabilities:
Reclamation obligations
3,089,570
Severance obligations
206,663
Long-term debt
132,827
Total long-term liabilities
3,429,060
Total liabilities
8,404,444
Commitments and contingencies
Minority Interest
679,514
Stockholders’ equity:
Common stock; no par value, 200,000,000 shares authorized, 180,390,972 shares issued and outstanding
37,634,251
Other comprehensive income
79,226
Accumulated deficit
(35,392,637 )
Total stockholders’ equity
2,320,840
$
11,404,798
See accompanying notes to condensed consolidated financial statements
3
GOLDEN PHOENIX MINERALS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended June 30,
2007
2006
Sales
$
4,466,470
$
—
Operating costs and expenses:
Costs of mining operations
2,008,578
126,230
Exploration, development and mineral property lease expenses
28,540
1,617,969
Accretion expense
46,826
38,498
General and administrative expenses
934,660
370,843
Depreciation and amortization expense
53,815
28,477
Total operating costs and expenses
3,072,419
2,182,017
Income (loss) from operations
1,394,051
(2,182,017 )
Other income (expense):
Interest income
36,381
1,434
Interest expense
(64,566 ) (202,615 )
Gain on extinguishment of debt
537,309
1,593,803
Gain (loss) on disposal of property and equipment
29,397
(17,233 )
Total other income (expense)
538,521
1,375,389
Income (loss) before minority interest and income taxes
1,932,572
(806,628 )
Minority interest in net income of consolidated joint venture
(873,884 )
—
Income (loss) before income taxes
1,058,688
(806,628 )
Provision for income taxes
—
—
Net income (loss)
$
1,058,688
$ (806,628 )
Kevin, other than warrants there should be no need for dilution when they are making a decent net profit.
This is by far the best 10Q that has ever been filed by GPXM and the fact that they are mining and making a net profit indicates even a higher net profit in the future as this is a very new turnaround.
Kevin and Steve...I only had time to take a quick look but GPXM had a net profit for the 1st time in it's history. They are also finally in good current condition for the 1 st time as well and the company has a net worth rather than owing more than the company is worth. The next 10Q should be at least this good if nothing unforeseen takes place. I stated that I was would wait for this 10Q and then make a decision. I will be holding due to a 10Q that is much better than I expected.
The option plan has very little to do with the future of the share price.
Today gold closed down .80 at $655.50 and silver closed down .02 at $11.71.
Kevin, silver should have a nice five or six week rally from here. The GPXM 10Q should be out on the 21st if there is the same time laps as the last 10Q.