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Golconda Gold Ltd V.GG

Alternate Symbol(s):  GGGOF

Golconda Gold Ltd. is a gold producer and explorer with mining operations and exploration tenements in South Africa and the United States. Its principal business activities are the exploration, development, and operation of gold mining properties. It operates through its wholly owned subsidiary, Galane Gold Mines Ltd., two assets: a producing mine which also has the rights to certain mineral exploration tenements (the mine and mineral exploration tenements collectively, the Galaxy Property) located in the Republic of South Africa (South Africa), through subsidiaries located in Mauritius and South Africa; and a mine and processing infrastructure located in the United States of America (the Summit Property). Its Galaxy gold property is situated about eight kilometers (km) west of the town of Barberton and 45 km west of the provincial capital of Nelspruit in the Mpumalanga Province of South Africa. The property covers 58.6 square kilometers and is part of the Barberton Greenstone Belt.


TSXV:GG - Post by User

Comment by MacRellenon May 01, 2022 9:52am
133 Views
Post# 34645796

RE:RE:RE:Massive cash bleed

RE:RE:RE:Massive cash bleed

So you're basically accusing management of exploiting investors' money to finance their lifestyles instead of developing the company. And you have nothing to back your accusations except stock price performance. OK.

There are of course "lifestyle companies" that operate like that. They are usually characterized by several of the following:
- repeated PPs
- no progress in the company's assets
- constantly issuing options and cheap warrants to management, and management making a profit by selling them in the open market
- excessive bonuses to management

I don't see those signs in Galane. Galaxy has been moving steadily forward, though it's been advancing slower than what management has previously guided. In part, this is probaly due to covid restrictions and lockdowns, which hit South Africa especially hard. Same thing goes for Summit - it's advancing slower than anticipated, partly due to covid.

Still, it seems they're always too optimistic when it comes to timing, so I don't trust them on that anymore. Unlike you, however, I don't believe management to be dishonest, and I think they'll deliver on their promises, albeit at a later date than originally expected.

Had they delivered on time, share price would be way higher. Since I expect they will deliver better going forward, I also expect share price to go higher in the future. So I think 13c is a good buying opportunity, but hope it falls a bit further before it turns upward again.

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