RE: OT-CoachHello Matt!
You stated: "They,like so many people made the mistake of overpromising and underdelivering it.
The problem is that mining is a tough business and so many mines have real start-up problems-even if they are restarting.
This is what I believe Great Panther is going through.I think that they can get on top of the problems and whether they meet their most optomistic forecasts from before- I am not sure." - ENDQUOTE
The above is pretty much exactly what I stated on this forum more than a month ago, and it was not a slam on GPR, but more a statement of the facts of life in the mining biz. It was not an attempt to bash the company. But I do wish that you would confine your comments on GPR to that BB.
Secondly, I am confused by your comments about IPT. You stated: "As much as I like the IPT story they have yet to be put to any production tests whatsoever." - ENDQUOTE
I must point out to you that IPT has faced the exact same production tests as GPR, and where GPR failed, IPT has passed with flying colours. IPT is profitable Matt, and that is not an accident or a fluke, of just some random stroke of luck. They have also increased their production rate on a quarter over quarter basis, and continue to forecast increases in the future. That is the responsible way to go about restarting operations. They could have made all kinds of bold predictions and got the market all excited, and then fallen right on their azzes... Or they can go about things professionaly, and build production gradually.
Have a look at the average grades of the ore that is running at Guanajuato, and at the production costs which currently run in the range of $14 per ounce of silver. Thats just operating results, and they are losing money. Add in the admin costs, and depletion and other non-cash items, and they are really losing money. Therein lies the problem. You acknowledge that GPR has made some mistakes, and then you immediately go on to say that its all good now. Maybe, but I suspect they are going to encounter further problems when they increase the production by running low grade oxide ores, and try to combine that with the feedstock they are producing from the lower levels of the mine. Have a look at DIB, and the problems they recently encountered when attempting to do the exact same thing. There may be more trouble ahead to resolve.
I do think GPR will get itself sorted out in time and the company will probably become a profitable producer. But I take exception to your willingness to give the weak operating performance of GPR a free pass, while at the same time presenting the implication that IPT has not been successful under the very same conditions.
You then state: "I like silver sufficiently and these are good projects so I would stick with the stock....." - ENDQUOTE
Well that is fair enough, but how is that when I issue positive comments, they are to be discounted because according to you, I am not the eminent authority on mining. Who among us on a public BB has the right to consider themselves eminent? This is all based on personal opinions and the sincere desire to share information. I am trying to present information that will help you and others to make better investment decisions. Sometimes that is not what people want to hear, and of course then I will be labeled a basher, but hopefully you are able to see the understand the points that I have raised.
I will state that I do take the time to meet personally and interview the senior management and staff, including engineering and operations managers, at many projects. And I do have more than a casual knowledge of the condition and efficiency of mining equipment that is deployed in the field, because I take the time to travel to Mexico and visit the projects. In fact, I am traveling to Mexico City on Tuesday, and I will be spending the balance of the week at Zacualpan to do just that. I understand that most shareholders will not have the opportunity to do that, so I post what I am able to see for myself on the forums of the stocks that I visit.
cheers!
COACH247