RE: RE: RE: asset purchase re: "I looked at the last quarter earnings of GGN. They had sales of $5.88 million and cost of sales of $5.04 million. Thats almost no profit at all. Subtract expenses and operating income is only $71k. Then they have to pay $889k in interest. They lost almost a million last quarter. The gain from warrant liability made the loss look smaller. Unless gold skyrockets, they need cash fast. They're processing existing heaps and dumps that have lower grade probably because they don't have the cash to mine new ore."
FWIW... To put this in context... This was GGNs first real quarter of gold production. Actually impressive their operating income was positive given they are working out kinks, adding new equipment, etc. not to mention processing heaps and dumps. I remember SGN posting some significant losses until the last 2 quarters when they finally seem to have found their groove and good for them. IMO same will likely happen with GGN. They will likely need another small cash infusion but then they will be on to processing virgin ore, capacity will be tripled, and operating costs will be drastically reduced over the next 3-4 months. I wouldn't count them out just yet. JMHO but we'll see.