A bit of an enigma. Has little or no coverage. Company is fairly complex as their projects are very diverse. Nervous about the political situation in the Philippines were they have a project. Likes what their doing in China.
China is very exciting for them, but at the same time, the results that came in last week were not nearly as good as they had hoped. Haved had a lot of dilution.
One of the problems is that they have about 400 million diluted outstanding shares. On the counter side they have what could be a good play in China on gold and a play in the Phillipines. Have a lot of potential. Just became cash flow positive this quarter. Buy at $0.085.
Has a history of long periods of dormancy. Fully diluted it has 400 million shares which is a lot. If you want a play in China and gold, this could be OK. Also has a play in the Philippines with a 2.5 smelter royalty. Now cash flow positive. To develop China will take an awful lot of money. Wishes he had sold all of it when it was higher.
This used to be a perfect contrarian play when gold was out of favour and China was getting hot. Their problem is that their share cap is huge. Their only escape is to consolidate.
10 years ago he owned it and did very well. He got interested again, but he can’t reach the company over the last two weeks. Lost $2.2 Million this last quarter. He is watching it closely. 450 Million shares fully diluted. He wants confirmation they will not do a concentration.
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