RE:The problem with Gran ColombiaThe assets haven't been split. There is still 16+ million oz gold there, only the market is pricing it at a huge discount. For people who don't use rear view mirrors to invest, it is currently a huge bargain.
Looking at the forward windshield
- They could be announcing record Q2 production soon since they already reported great numbers for the first two months of the quarter.
- Gold price is higher Q2 than Q1.
- They likely won't be paying as high an income tax as the $6m in Q1 giving more free cash.
- Rear view mirror Colombian peso was higher in Q1, but front shield shows peso back down for Q2
https://www.xe.com/currencycharts/?from=COP&to=USD&view=1Y - AISC will be lower from higher production and lower peso.
- Tonnes milled has consistently increased every Q for the last 2 years
- Continuing to modernize mine making it more efficient
- Adds up to higher free cash flow. Deb holders who get redemption call will eventually be forced to buy the shares as the debs run out if they want to keep their position in GCM.
- Possibility of reversal of impairment charge (but i wouldn't count on this one)
- Possibility of agreement with more illegal miners increasing production. Plant has extra capacity.
- Plenty of room to increase grade for Company operated mining in Segovia to increase production and reduce AISC.
- Marmato report soon out, possibly including the deeps portion increasing resources. If you squint and look through the front windsheild far enough down the road, you can see Marmato contributing to a multi bagger. Low $500 per oz cash cost $1.6 Billion NPV world class deposit currently valued at zero.
- Possibility of addition of analyst. As already said before, the order is analyst first, then institutions (if any). Above $1 allows institutions to buy, it doesn't mean they MUST buy.
- Increased 20k meter exploration drilling.
- Plus whatever else there is.
The front windshield looks a lot brighter than the dark rear view mirror.
Pacific Rubiales initially made money. Didn't their drop have anything to do with the plunge in oil price? Like what happened to every other oil company.
baystock1 wrote: After the debt restructuring and peso devaluation Gran Colombia looks a lot better as an investment, if you look only at the balance sheet. But there is still the problem that the same leadership that screwed up so badly is still in charge. I am referring to Serafino Iacono and his partner Miguel del la Campa.
After the Gran Colombia IPO in 2010 there was a 4 for 1 reverse split. Then in 2012 ? there was a 25 for 1 reverse split. And this year there was a 15 for 1 reverse split after the debt restructuring. This all adds up to a whopping cumulative 1500 for 1 reverse split in 7 years.
None of the other independent directors own any shares. Maybe the CEO Lombardo can be credited with turning things around, but he also doesn't appear to have any skin in the game.
Also look at the mess in Serafino's other ventures such as PRE/Pacific Rubiales. He does not have a good track record, other than looking after his own interests at the expense of his shareholders.