RE:RE:RE:RE:RE:OTC here we come...... Per the Q2 financials, they have a total of $83 million in current assets + assets held for sale. Compare that to a total of $99 million in current debt. Add in the $10 million in cash from the silver and peruvian assets and there is a net deficit of about $6 million.
How much out of the $99 million are trade payables and other such debt which can be restructured? Maybe half or more? Wages payable will NOT be touched as you need the workers to continue working if the restructure will be successful.
Long story short, the deficit is not a catastrophic deficit as ot today. The courts will likely allow GPL some time to see if the ship can be righted. It is much better for the creditors to receive say 75 cents on the dollar than to risk losing most of it if we have a court ordered fire sale.
If GPL is unable to turn this around in the next 12 months or whatever the restructuring period the court approves, the next step would be either Chapter 7 or the DIP (debtor-in-possession) last gasp at restructuring.
If we go the route of DIP or Chapter 7, our only hope as shareholders is if we find other miners to give us anywhere near fair value for the mine assets we have on the books. As I said before, we have PLENTY of net worth per share, but how much of it would be wrung out if we are forced into a fire sale?
I think it very possible that a white knight (or opportunistic investor) comes along and swoops us up, cleans out the bad management and salvages us some value.
If, within the next 12 months we shoot well past $2k spot price for gold, this puppy will shoot upwards like a shooting star. This is really a highly-leveraged play on the price of gold over the short-term. At 11 cents a share, not a lot of risk but some SERIOUS upside if this ship gets righted. by Heywood_Silvers (219) @ sth; https://stockhouse.com/companies/bullboard?symbol=t.gpr&postid=34963200
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