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Gold Reserve Ltd V.GRZ

Alternate Symbol(s):  GDRZF

Gold Reserve Ltd., formerly Gold Reserve Inc., is an exploration stage company. The Company is engaged in the business of acquiring, exploring and developing mining projects. The Company owns certain wholly owned mining claims known as the LMS Gold Project (the LMS Property), together with certain personal property. The LMS Property is situated approximately 20 kilometers (km) north of Delta Junction, and 150 km southeast of Fairbanks, Alaska in the Goodpaster Mining District. The LMS Property, located in Alaska, remains at an early stage of exploration with limited annual on-site activities being conducted by the Company.


TSXV:GRZ - Post by User

Bullboard Posts
Comment by slappyjoon Oct 28, 2016 7:50am
140 Views
Post# 25397049

RE:4 Days Away now 2 days away 650mil US dollars

RE:4 Days Away now 2 days away 650mil US dollars"Your" way off and very optimistic.

There are 110 million fully diluted shares.  GRZ will get  $650 USD on Oct. 31 which will be taxed at approximately 15%.  MOST (not all) of that will be disbursed as a dividend to share holders.  If they pay out 100% of that $650 USD, post-tax, that will be approximately $5 USD per share.

The share price won't necessarily increase by $5. It may not increase at all, based on the date of record.  If the date of record isn't in the future, and I doesn't have to be, the share price will not move up by $5 per share because there is no incentive to buy the stock.

Once that $5 is distributed, the equity is gone from the company.  Share price could drop.

The same scenario could potentially occur every 3 months thereafter, when each of the additional quarterly payments are made.

Basically, your biggest mistake is thinking the company will hold the $1 billion it gets over the next 14 months, tax free,  and pretending the share price will reflect that $1 billion.

Quickly:  $1 billion USD @ 85% = $850 million, divided by 110 mil shares = $7.72 USD/share. Once that has been distributed, the value of the company drops considerably. It has no assets and no income.  Factor in the thought of not only building a mine from scratch, but doing so in Venezuela.  Shares could trade for under $1, depending on the prospect of getting the mine built and financing it.  I would definitely be a buyer of more.


Bullboard Posts