Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I love the optimism.
Obviously the money they raised through convertibles went to getting Fencemaker open and is gone. You're point is valid, because it seems like they completely squandered that money and we do not have much to show for it. That money and all the shares being issued to cover notes has nothing to do with securing financing for the mill.
The whole thing seems like it is dependent upon financing.
I'm told they're working on things and Don has been in NYC. Murdock has put them in front of investors, but I have no information at all about what came out of it.
Just to be clear, I have complete faith in the operations team, as long as they get the money they need. I do not have very much confidence in those whose job it is to secure financing, however. I'm looking for Don to redeem himself big time I'm the coming days/weeks.
They can pull it off, they just need money. Don is in NYC... Let's see if anything comes out of it.
Yea, I know. Hopefully they give us some help to get through the convertible.
It's dilution free for 5 weeks after, however.
Time for the bad news...
Paraphrasing Bob's response to me,
That note has not yet been issued, but the request was filed and it is now in the hands of the T/A. If it is released this week, it will be reported in the weekly update.
On another note, Don is in NYC and has several meetings scheduled with Murdock today. Also, he offered me the following comment, "items are being worked on that we anticipate will be brought forward in the near future to the investment community."
FWIW
One key thing of importance is the convertible note that was due on September 4, 2014.
I know that it may have been settled at an earlier date, but I don't recall seeing anything in the float increases over the last couple month to suggest that it was. It is possible that note was held by Tonaquant and it was part of the $150K deal they reported in July.
What is more concerning is if the note has not yet been settled because they may not have had enough unreserved/unissued shares to cover it. If that is the case, it will not be issued until the AS increase goes through, possibly next week.
I have a couple emails out looking for clarification. I'll let you all know what I find out.
IF that note was settled as part of some other agreement, then I like the potential here for a rebound over the next month, ASSUMING that we get some news over the next few weeks.
You're right, it's not hard to do. Drive it down, get a lower conversion price and then cover. It seems that there is evidence that the stock is being shorted, on their end.
My question is, where the hell is the convertible that was due last week?
I'm here, there's just nothing to be excited about. I can come here and rain on the parade and tell everybody yet again that this is NOT a lithium play anymore, but what good would that do.
As I understand it, Don is confident that everything will come to fruition... But other people are not as confident. He's a stubborn, stubborn man is the impression I'm under.
Point blank, based on what I know, this is a lottery play. If they pull it off, there will be a nice payout. But, everyone should understand that the odds are against us at this point.
My point is, something needs to be done immediately about the pps or else this is going to zero. Why the hell isn't Don addressing this?
I'm not concerned at all with the operations team, I'm concerned with Don and Bob and their ability to manage the company and raise the funds they need.
Tom Dean told me after the PR announcing G8MI's $200k investment,
"Obviously, there has been substantial progress on the financing front, and while additional financing will be needed, this is a very good start."
Well, that was in July and there has been no announcement of any more funding, while the stock price has plummeted. Given the amount of shares they have that are not on reserve (376,486,000 based on the definitive 14c), there's only enough free shares to raise like $400-$500k. If it's through convertibles, then you're talking like $200-$250k. And that's assuming the current note holders do not require an increase in the number of reserved shares required.
I don't know what the point of no return is here.
There's a 90M note hitting today and we're heading toward trips, yet the company hasn't told us anything. All we have gotten are some weak PRs and news that Don is now the interim CFO.
Correct. So, my question is, are convertibles even an option anymore.
They're close to losing money here as it is. There's a note due in December that is pegged at a conversion rate of 0.015, as of right now they'll lose 90%.
That's what I'm figuring also.
Unfortunately, they took a huge gamble on Fencemaker without really knowing what they were doing. It seems that the hole they dug, no pun intended, themselves into has proven inescapable.
They decided to reevaluate Fencemaker and other properties. While I'm told that the results for Fencemaker are coming soon, I'm not very excited about them because it seems they've been working on alternative avenues, namely these gold properties. Why would they shut down Fencemaker and do a new study if everything was okay? And if Fencemaker isn't what they thought it was, what assets does the company really have? What value did the deal to acquire an additional 19% of G8 in exchange for 5M preferred shares really give investors?
There's a convertible due tomorrow that amounts to about 80M shares or so.
Jimmy is very active in the company, but he can only do his job if Don and Bob do theirs. I have complete faith in Jimmy and his team, but not so much Don and Bob. I'm looking for them to surprise me here soon.
You obviously make a logical argument, but it's the OTC and things can turn around very quickly.
The real concern I have is how are they going to move forward when we still have no news of financing. At this pps, how much of the company will an investor need in exchange for providing us the cash required to get to profits, and does the company have any choice at this point than to issue a very large amount of shares for that funding. Convertibles are the most viable option, in my opinion.
One thing is for sure, we are paying the cost for Don and Bob's mistakes last year. The company will not rebound without shareholder support, and the conversation here suggests that they will not get that support as long as Don and Bib are running the show.
That's the spirit...
I want the gold!
FLPC
Positive news like promising results and possible revenues from their exploration and sampling work potentially by the end of September?
I also want to say, on this subject, that they appear to be operating more scientifically now with more of a focus on geology than in the past. Their strategy last year was essentially described to me as drilling a couple holes, taking samples, and then blasting and hoping for the best. I'm very confident that they're going into these gold properties with a much more calculated plan.
I don't have time to fully research this again, but I did do some DD on Dr. Johnston when he came on board. It's not surprising to me that they're going after gold, as it seems to be what the companies he worked for in the past did.
From the PR announcing him joining the company:
"Dr. Johnston is also engaged in ongoing research on the genesis of Carlin-type deposits and their relationships to porphyry and polymetallic deposits, and has published an exploration model used successfully to discover the Helen Zone at the McCoy-Cove property in Nevada."
As best as I can tell, this work was done when he was with Victoria Gold. That property was subsequently sold for +$50M (it's a public company, look into it).
Again, I've been told the guy is a genius and thinks outside the box. I'm comfortable with possibility that he may have found something in the area. I remember a couple months ago when they said he was "in the field." Perhaps this is where he was.
As far as Jimmy's experience goes, it is difficult to find any verifiable information on him as he spent most of the last 20 years in Hong Kong. But, from conversations with him, he has told me that he has "been around the block many times" and that he has done this before. I personally trust him because he has been pretty straight forward and honest with me on issues that he can speak about, good or bad.
Things are moving a long.
Communication is opening.
I see much progress through September.
Go FLPC.
Those updates go away as soon as the next comes out. They should have an archive available, but they don't.
Don't read to much into it.
That was their target, the end of the year.
As I understand it, the mill is setting that can be constructed and utilized in different components, so a full blown mill is not something that will happen by end of year. In fact, it doesn't seem like that was ever the plan. The operations plan called for a slow ramp up in capacity and capability.
I don't care where they get ore from, as long as it from an optimal source with respect to bottom line profit.
Two. I'm done talking about this.
Go FLPC!
Again, I concur. Lots of dots to connect but they all lead to big changes.
I'll vouch a little for the guy. I have no clue if he was contacted, but this idea did come up as something that was under consideration. I have no clue how viable it is or where they stand on it, but I'm all for it. I hope they did contact you.
I still wish you and MB would clear the air and explain your connection.
It's clear to me that investor support moving forward is going to be key to FLPCs success. I'm confident that the company will bridge the gap in the next month or two.
The company made a mistake. Bob was VP of operations at the time. He is now basically an IR guy. Do the math.
Who is defending him? He's been marginalized.
MB,
I agree with you with respect to Don and Bob mismanaging investor relations. Their silence and refusal to take on issues and be proactive is of great concern and has only made matters worse.
I've communicated repeated and strongly to the company, through my rapport with Jimmy, that they are delusional if they think things are going to get better without giving us information. I've also expressed my opinion that I feel it is unethical to withhold information if they have it.
I assure you, our frustrations are shared even amongst management.
September is it. If there is not a much clearer path forward and more details communicates to share holders over the next 5-6 weeks, it's going to be hard, even for me, to see a good ending here. They have 7 weeks without any convertibles due and that will be the time to share a comprehensive plan, get investor support, and get the PPS rolling in the proper direction.
A couple things I want to point out about this post for those who are not as familiar with the company.
First, while it is true that there is $300k of convertible debt due I'm December, it is worth noting that the the conversion factor is fixed at $0.015 per share. About 20M shares to get out from that convertible, which is relatively cheap at the moment.
Second, the company has full intentions of releasing their 10k on time. It has been communicates to us via Facebook and CEO updates that audits and inventories are already being done.
I think you're confused.
The dilution over the past year wasn't raising cash for the mill, it was paying off debts for cash raised last year.
Unfortunately, that cash was dumped into Fencemaker. That was clearly a costly mistake and we are and have been paying for it.
They have been very careful not to make statements that would give investors a wrong impression. Their PRs have been, in my opinion, very conservative with respect to SEC regulations.
Furthermore, they never said any of this is going to be easy. In fact, it seems that they have a lot of work ahead of them.
This isn't sugar coated in any way. They haven't made references to surrounding properties or statements about how much money they can make here. They simply say that they feel this could quickly produce positive cash flow that will help them to their ultimate goal of establishing a mill.
Last I checked, we're not a major player. There's some mom and pops that make profit mining placers, and that's profit that that we need right now.
Jimmy is more calculated than Bob and Don. Make no mistake, Jimmy and Dr. J brought us to this land. Have I mentioned that they've done this before?
If anybody has concerns about whether Marcus is still with the company, I suggest doing some DD. You can start by emailing him, he gave his email out during the conference call.
Personally, it's something I keep tabs on because if he leaves, it doesn't bode well for the company. But, all indications are that he is still active in the company which implies that he still sees potential here.
It's supposed to be dry processing of up to 500 tons per day on site.
What a refreshing outlook, most people around here think the share structure sucks!
I agree, this thing can move quickly.
Yes, now that's a missing piece of the puzzle.
They did say that they were surveying many properties around the area in the conference call, so maybe they just ran into something here. There was gold recovered on these properties in the past, so there is gold there. You're only talking about a total of 10 acres of land, though. Again, I hope Marcus' knowledge of the area had something to do with how they landed here.
By your logic, there would be no profitable mining opportunities left anywhere in the area. That simply isn't true, in my opinion. There's still money to be made.
We don't know anything until the exploration results come out. Again, why are they moving so fast? If it doesn't work out, it could mean we go busto, no?
We will know soon enough. Looking for pictures of Don on Facebook on site holding gold.
The business plan last year was centered around the belief that they would have revenues from Fencemaker. That simply didn't happen, but it's also very much priced into the stock at this point.
They seem to be ready to move on these properties, everything is in place and they are just waiting for the go ahead. You have to ask yourself why. Are they all in here on just a prayer? They set a timeline, exploration results in mid September. If they don't follow through or if things don't work out, it'll get ugly.
As I've said before, long gap in dilution throughout September and into October... This is when it makes most sense to get things moving and set investors expectations. Pictures, maps, etc expected in the next few weeks.
It's not a car wash. It's a gold mine. Something Jimmy and Marcus have experience with.