Golden Prospect Precious... Share Discussion Threads

[noirua] 29/7/2020 09:09

KITCO -
Among likely shares held by GPM


Silver chart:
Gold chart:

[toffeeman] 29/7/2020 08:52

Noira

I think you are mistaken - the NAV of the whole shebang assuming all the subs will be converted is 66.50 so that is the figure on which to work.

If you use this figure the subs are trading at a small premium.

Ken has it right (I think)

[noirua] 28/7/2020 20:47

On dilution. The GPM shares trade at a discount due to the awareness of likely dilution. Without a discount the middle price would be 75.8p, with a spread of 2p. So GPM's discount is 7%.
The discount between the middle price at 75.8p and the diluted NAV shown as 66.59p is 12%.
Therefor the difference 12% - 7% = 5%.
So the 76.8p NAV reduces by 5% to 73p. As the middle price of GPM is 70.5p GPSS is trading at a discount and not a premium.

My own opinion is that GPSS themselves should be at a further premium.

[highly geared] 28/7/2020 17:19

Expect gold/ silver to take a breather and form a new base. May see these between 20-22p for a period before moving up in line with gold/ silver and underlying miners.

[kenmitch] 28/7/2020 17:07

Wrong.

The subs are very likely to be exercised so the NAV figure to use is the 66.59 figure. So GPM is now trading at a small premium.

[noirua] 28/7/2020 16:49

NAV Golden Prospect is in fact - 76.80p - This is a discount of 8.9% to NAV for GPM at 70.5p.

Middle price of GPM is 70.5p - 46.14p = 24.36p

[toffeeman] 28/7/2020 16:36

NAV GPM diluted - 66.59 less exercise price 46.14 = 20.45 - so methinks we are trading at a premium?

[noirua] 28/7/2020 16:16

Silver Chart:

[phoebusav] 28/7/2020 10:16

Gold price moving up fast and big slams near ATH and $2000. How else would you expect things to unfolds if it was indeed moving to $2500, $3000 plus? Everything is unfolding exactly as you'd expect. Don't forget to BTFD when you get the chance. GLA

[noirua] 27/7/2020 15:03

Gold miners in the states and Canada are up about 5% and silver miners 7%. Some smaller explorers are up 8% to 35%.

[kenmitch] 27/7/2020 14:06

Good point Toffeeman about checking with our brokers re exercising process. It all used to be routine with process explained and appropriate form supplied well in advance, but it’s so long since a sub share was worth exercising (partly because hardly any left) that some brokers might not be up to speed, and so might need a prompt..

[toffeeman] 27/7/2020 10:53

My current plan is to sell sufficient so that I can convert the rest.

Will need to read-up on conversion process and make sure AJ Bell can organise the deal.

[highly geared] 27/7/2020 10:48

Can see these at 50p within 3-4 weeks if gold/silver maintain strength.GPM underlying at £1.00 looks within reach as the underlying basket of miners share prices really take off. Don’t sell too early!

[sunshine today] 27/7/2020 08:16

Paper money worth zero

The penny is slowly dropping.

[noirua] 27/7/2020 08:10

Silver shares took off down under. ASX:IVR Investigator Resources rose 21%.
Newcrest rose 5.2%
An American bank has loaded with silver and controlling the price. Thoughts are they will give up shortly.

[noirua] 27/7/2020 08:06

Silver Chart:

[highly geared] 27/7/2020 07:22

Rocket fuel provided for the moon shot. This should go skyward in the coming days as the GPM holdings take off..

[steve73] 27/7/2020 06:47

shsss.... I want to add..!!

[32campomar] 27/7/2020 06:36

Gold & silver rampant overnight, gold $1929 August contract, silver up 7%!! New record established for gold

[phoebusav] 27/7/2020 00:21

Gold over $1910 so only $11 to go till ATH. Should be in bed by now, but don't want to miss the action.

[noirua] 25/7/2020 11:27

Sometimes things go wrong. EK lost £60k on Oxus gold and I was caught out to the tune of £21k myself. My reason was different as my confidence was high after buying and selling for two years netting over £10k in margin trading. My eye was off the ball as Oxus was taking on a country, Uzbekistan, that had American bases installed and China had over 90 companies based there and many European including French. A French Arbitration court surprisingly decided against Oxus and that was that. For some investors it was a case of 'Blood on the Tracks'.

[atlantic57] 25/7/2020 11:03

I have great respect for Simon Cawkwell.

Years ago an oil Company was drilling for oil in some obscure part of the world.
The share price had rocketed ahead on speculation.He telephoned the Company Drill head and spoke to an official who was near the well and implied that drilling suggested the results would not meet expectations.

Simon immediately opened a huge short position.

24 hours later the company announced a dry hole and he cleared a million pounds.

However the authorities were not happy.

[noirua] 25/7/2020 10:31

atlantic57 et al, this buying of GPSS at 20p by Simon Cawkwell was a surprise to me. It explains why the shares went up after profit taking in gold and silver shares in Canada and America on Thursday - only Newmont the exception due to positive vibes in the media. GPM came out with the reduced NAV of 72.88p rather later than usual on Friday. There was some recovery Friday evening with NYSE:DRD, a favourite gold stock of mine, bouncing back strongly, though overall not making up for Thursday as gold/silver royalty stocks TSXV:EMX and TSXV:ELY reversed further. Evil Knieval's article is one I dare not go against.

Evil increasing his great gamble on Tesla, £250,000 in the red a week or so ago, is one I must back. My own short position, taken out last today, is only via Granite.com, 3:1, and commission around 4 - 5.5% per annum. Afterall, EK has balls the size of planet Jupiter.

An article by another poster here pointed out some reasons for the discount of GPSS. One that eventually new shares will be issued in early December with GPM receiving 46.1p per share against today's price within the 68p - 71p spread - a discount of 33% and 37% to the NAV of 72.88p.
Another is the problem for investors once we reach November and a lesser extent in October. If you build up cash at 46.1p per share, 100,000 shares = £46,100, then things are hunky-dory - though meaning good for partying. The possible squeeze at some stage would be a pullback in the gold price, if only temporary.

Gold podcasters have views presently from $3,000 for gold within two years to one Swiss guru Marc Faber, normally bullish on gold seeing a pullback for reason of losers on other investments having to sell gold to cover losses elsewhere.


My own view is that the $2,000 fence is likely to be a Beechers Brook and Chair combined: If only in the short term. However, that is precisely what GPSS shares are 'short term'. Just don't get caught out in the second half of November. What will happen then? If GPM share are 70p in the final days of November the MMs might show a spread of 10p - 20p against the present 19p - 20p. Some will be caught out and especially if sadly laid low by covid-19.

[atlantic57] 25/7/2020 08:39

hxxps://www.sprottmoney.com/Blog/here-cometh-the-fed-david-brady-july-24-2020.html?utm_source=Newsletter&utm_medium=Email&utm_campaign=DBrady_July/24


Here Cometh the Fed - David Brady (July 24, 2020)

A balanced sensible article in my view