RE: RE: RE: RE: RE: RE: RE: Website finally
Their business model is a royalty mining growth strategy, with one 30% share mine already in production as of July. In the next two years they should have at least two or more of their properties up and producing. Much as I like Metanor, I decided not to wait to buy more in case the price does not decline, and so instead I put the extra money in GPXM.
As a result of a review of Golden Phoenix’s recent SEC filing, I do not see that there is a positive risk reward in respect of this company with a stated insolvent Balance Sheet and losses, which may require massive future dilution to stabilise. 322m shares have been issued at one tenth of a cent = $322,000 issued capital – but stockholders deficit exceeds $800,000…….. If the opportunity arises and I was an investor, then I would prefer to switch to Metanor.
|
Condensed Consolidated Statements of Comprehensive Income (USD $)
|
3 Months Ended
|
6 Months Ended
|
|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Loss from continuing operations
|
$ (7,187,091)
|
$ (1,367,907)
|
$ (9,084,847)
|
$ (1,830,397)
|
|
Income (loss) from discontinued operations
|
192,285
|
-1,855
|
192,285
|
8,909,809
|
|
Net income (loss)
|
-6,994,806
|
-1,369,762
|
-8,892,562
|
7,079,412
|
|
Unrealized loss on marketable securities
|
|
-764,099
|
|
-152,892
|
|
Other comprehensive income (loss)
|
$ (6,994,806)
|
$ (2,133,861)
|
$ (8,892,562)
|
$ 6,926,520
|
|
Condensed Consolidated Balance Sheets (USD $)
|
Jun. 30, 2011
|
|
Cash and cash equivalents
|
$ 90,283
|
|
Prepaid expenses and other current assets
|
111,268
|
|
Total current assets
|
201,551
|
|
Property and equipment, net
|
164,519
|
|
Deposits
|
50,000
|
|
Total other assets
|
50,000
|
|
Total assets
|
416,070
|
|
Accounts payable
|
462,909
|
|
Accrued liabilities
|
332,736
|
|
Current portion of long-term debt
|
260,378
|
|
Amounts due to related parties - current
|
233,492
|
|
Total current liabilities
|
1,289,515
|
|
Long-term debt
|
12,002
|
|
Amounts due to related parties - noncurrent
|
|
|
Total long-term liabilities
|
12,002
|
|
Total liabilities
|
1,301,517
|
|
Commitments and contingencies
|
|
|
Common stock;
.001 par value, 800,000,000 shares authorized, 322,261,943 and 271,988,900 shares issued and outstanding, respectively
|
322,262
|
|
Additional paid-in capital
|
52,649,095
|
|
Treasury stock, 675,392 and 309,500 shares at cost, respectively
|
-104,815
|
|
Accumulated deficit
|
-53,751,989
|
|
Total stockholders' equity (deficit)
|
-885,447
|
|
Total liabilities and stockholders' equity (deficit)
|
$ 416,070
|
In May 2011, the Company entered into a stock purchase agreement with an institutional investor for up to $12.5 million. During the six months ended June 30, 2011, the Company received proceeds of $500,000 from the sale of its common stock under this agreement. The Company recently announced that, subsequent to June 30, 2011, it had closed a $1 million bridge loan facility and signed a term sheet to obtain a $15.5 million gold stream debt facility, secured by substantially all assets of the Company. There can be no assurance that the Company will successfully complete the debt facility or that it will be successful in its efforts to continue to raise capital at favorable rates or at all. If the Company is unable to raise sufficient capital to pay its obligations and the Company and its joint venture or alliance partners are unable to obtain profitable operations and positive operating cash flows from current mineral projects, the Company may be forced to scale back its mineral property acquisition and development plans or to significantly reduce or terminate operations and file for reorganization or liquidation under the bankruptcy laws. These factors together raise doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.