GRY 0.00% 20.5¢ gryphon minerals limited

Thanks for your confidence Cha I think the main problem with GRY...

  1. 11,109 Posts.
    lightbulb Created with Sketch. 616
    Thanks for your confidence Cha

    I think the main problem with GRY has been its management team, especially its CEO.

    WAF has had some very good drill results to get it moving. Its CEO is not a spendthrift and would never have wasted the $80m+ GRY once had in its kitty.

    I am hoping for a better offer and I do not like TGZ's management team - have followed them for some years, often as a shareholder, and this is the first time they have done a very good deal for their shareholders. I have given my negative views about TGZ on their thread in the past.

    AMX was on its knees when it got taken over - I think they had over-stated the quality of their gold deposit so when it came to actually developing it during the fall in the gold price, nobody was interested and was trading at around 9-10 cents. CNT had the funds and skills to develop their deposit. AMX is an interesting story because it was trading at around 5 cents in late 2008 during the GFC but due to some good drill results and international promotion by its management during the boom in the goldies it quickly ran to around $3. I bought a small parcel of AMXX shares in 2009 for 28 cents but sold them a couple of weeks later for 30 cents thinking they were too risky. Missed out on making potentially over $100k.

    I guess its all about the timing of buying and selling these golden dreams.

    GRY and TGZ are not the sort of goldies that I plan to keep long term. There are good reasons for their under-performance, and I think TGZ needs new and much better management. TGZ understates its headline AISC by omitting the heavy royalty payment (about USD100/ounce on 2016 production) it has to make to Franco Nevada, a deal which is to last 40 years in respect of their Senegal tenements. Since TGZ is a higher cost operator it will have greater percentage increases in its operating margins as the gold price rises, and so there could be some good spurts in the share price. On occasions it gets spruiked in north America.

    loki
 
watchlist Created with Sketch. Add GRY (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.