I don't know why you are bringing in Passport. I didn't mention it. However, Passport shareholders are in much better shape than Prospect shareholders, for a number of reasons:
1. Passport has $35 million in debt, none of it short term. Prospect has about $120 million long term debt and somewhere in the neighborhood of $10 million short term. Passport does not need massive near term financing to avoid bankruptcy, Prospect does.
2. Prospects land package sucks. It's core is checkerboarded, meaning that it cannot mine (at least not without great trouble) its holdings as a unit. Secondly, almost half of its holdings are under the Petrified Forest National Park. It does not have permission to mine there, a likely would not get such permission. By contrast, Passport's core holdings are contiguous and none are under the Petrified Forest National Park.
3. The directors and management of Passport have long and distinguished resumes in the mining (notably potash and other fertilizer) field. Prospect's do not. Also, prospect's leaders have botched and looted everything so far. NOBODY in his right mind would lend the Prospect gang enough money to pay off Karlsson. If somebody wanted the Prospect land package for mining, he would wait for bankruptcy to buy it. The current Prospect shareholders will get nothing.
Passport is not just as likely as Prospect to go bankrupt, for the above reasons.
AI
