Article from todays ODT:
http://www.odt.co.nz/news/business/2...covering-costs
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Article from todays ODT:
http://www.odt.co.nz/news/business/2...covering-costs
Yes, thanks SSB, not much new there, except the caption: which is technically wrong. It would appear that the placer work is doing a lot better than covering costs of gold recovery. It's also paying for G&A costs (Admin) and some exploration, if it keeps on trend. This would be after paying installments to Bob Kilgour, wages and repairs on the gear, and landowners royalties. I'll certainly be looking hard at the placer costs versus income, if they are split out.
The GEL price has dropped abruptly today, in a catchup with the TSX price I guess. I cannot explain the volume and drop over there, but there is a possibility some overseas holders have seen the presentation now placed on the GEL website, and have assumed a private placement is forthcoming. Maybe not though.
Brent Cook has brought investors into the share as well. Back a month or three, Brent Cook was live on BTV and said it was a real possibility (or a sensible outcome) that Glass Earth would be bought out by Newmont at some stage. This would have to be one of the reasons why the Neavesville project has been proposed. Let's face it, GEL appears to have a lot of other things going on, for a small company with limited cashflow in the past. They added a new prospect (not a cheap one to maintain in future) under the nose of Newmont, for a reason.
Perhaps the time payment setup for the new project is a way of stalling the need for new capital, in the hope that placer gold can fund a big chunk of it.
so much activity today!
thought i'd take advantage of the price drop myself and increase my holding a few thoasand more :) and drop my average purchase price
Once they release the quarterly report i think the price is going to rally somewhat, absolute bargain at the moment in my opinion! 70oz a week they should be clearing at least 100,000USD a week currently and now its an established placer it should be able to icnrease further than that as we come into the summer months and conditions down south improve.
I hope there is no takeover for GEL in the near future, I'm really looking forward to seeing what this could turn into
Nice Yankiwi,
I just noticed that the next ask price is 39c(29 now), so depending on the TSX overnight there could be a massive jump tomorrow.
Update: Today's not the day - TSX down 2.86% - Not bad though.
Yankiwi's patience pays off again, fair enough. At least none of us can say the share is illiquid at the moment. My attention is on the placer, because this is an area that GEL could use to maximum advantage during difficult financing periods. I wonder if they'll think about running longer hours, and with more machines. Here's a bit about how placer and gold is formed, from a point of view of finding nuggets.
http://www.nuggetshooter.com/article...formation.html
Drybread only has fine gold placer, which implies that the hardrock deposit it came from was in wider veins, rather than shorter and smaller, distributed ones.
GEL could fit what's been publicised about the RAM 'portfolio' - do you suppose this is the receivers dumping it to fund the process?
Come on GEL, what are you up to?
...it's the end of the month.
you were right Yan
Revenues from placer mining operations increased significantly for the quarter to $1,079,000 (June quarter: $349,000). Gold production in September and October was considerably higher than for the winter period with the December quarter expected to increase further.
The Company had a net loss for the three months ending September 30, 2012 of $456,000 vs $670,000 for the similar period in 2011.
Three months ended Nine months ended Notes September 30, September 30, 2012
$''s2011
$''s2012
$''s2011
$''sRevenue 1,079,000 180,000 1,595,000 607,000 Cost of revenue (1,360,000 ) (114,000 ) (2,408,000 ) (352,000 ) Gross (Loss)/Profit (281,000 ) 66,000 (813,000 ) 255,000 1 Administrative expenses (122,000 ) (334,000 ) (821,000 ) (769,000 ) 2 Salaries (net of exploration costs) (65,000 ) (69,000 ) (190,000 ) (183,000 ) Finance income 12,000 (6,000 ) 18,000 31,000 Non-cash items Stock based compensation - - (556,000 ) - Write down of mineral properties - (327,000 ) (6,590,000 ) (327,000 ) Loss before & after Income Taxes (456,000 ) (670,000 ) (8,952,000 ) (993,000 )