Golden Prospect Precious... Share Discussion Threads

[plasybryn] 16/8/2020 13:16

Thanks Steve73. Brilliant reply. Thanks for taking the time.

[steve73] 16/8/2020 11:56

plas... You can "subscribe" for a "M" for every SS you hold on 30th Nov this year on payment of 46.14p. After this date the SS are expired...

So assuming the M's are trading at above 46.14p then the "fair" price for the SS is M-46.14 (ignoring any "time" value).

So currently, the M's are 66p mid, so you'd expect the SS to be around 20p. They are in fact 18p, so a little cheaper than expected (10%), and by buying the SS and then converting you would end up with M's a little cheaper than you could currently buy them for.... assuming nothing changes between now and the 30th Nov.

BUT... for every 1p the M's increase, the SS might be expected to increase also by 1p. A (say) 20p rise in the price of the M would be expected to result in a similar 20p rise in the price of the SS. So you'd get a 30% gain in the M whilst the SS would more than double. So from the current price there is a gearing multiple of 3-3.5.

Of course if the price of the M's drop, then you'd expect the SS to drop roughly p for p, so you would lose more in proportion. If the M price dropped to 46p (30% drop) the SS's would drop to zero (100% loss).

The other "problem" with the subs to be aware of is that you need to pay the extra 46.14p on Nov 30th to convert, although supposedly the co. will appoint a trustee to convert on your behalf.

But if you believe the G & S price will continue to rise until end Nov, and with it the share prices of the mining companies in which GPM hold shares, then the Subs represent a better opportunity than the underlying shares, at least whilst they are at a discount.

NAI, DYOR, etc.

[atlantic57] 16/8/2020 11:38

Plas that depends on your own investment preference. The subs offer greater opportunity for % wealth creation or destruction on a short term basis.

i personally only hold the sub shares to the extent that i can meet the call when funds are required to convert to shares.

That is my personal opinion for me.

[toffeeman] 16/8/2020 10:46

I hold both

[plasybryn] 16/8/2020 10:42

Would you be buying GPSS rather than GPM? I'm not sure about the difference here other than the performance. Subscription Shares - November 2020?

[noirua] 15/8/2020 13:20

3-Day Silver chart:
3-Day Gold chart:

[noirua] 13/8/2020 14:31

Silver price in the early stages of trying to breakout. Looking more jocular than gold.

[noirua] 12/8/2020 15:34

Added more GPSS at 13.7p.

[greenrichard] 12/8/2020 15:11

Current GPM price at a discount to diluted NAV. With the Top 10 holdings mainly up at the moment too.

[noirua] 11/8/2020 15:48

Added some more GPSS at 13.6p approx.

[noirua] 11/8/2020 14:22

Gold and silver shares quoted in USA are down an average 5.2% as of posting. Gold royalty stocks are holding up best. Weakest are silver shares down an average 7%.

16.00 - Average fall at 6.1% with silver stocks in the main between 7% and 8% down. Gold royalty stocks only down 3%.
A major share Pretivm TSXV:PVG, held by GPM, is down 3.1%.

[32campomar] 11/8/2020 13:58

Big move in gold now down $60, silver down 6%

[greenrichard] 11/8/2020 13:27

NAV not too bad considering although it won't take into account today's potential losses. Even if 5% off NAV that would still be diluted NAV of 60.75p

So GPSS share price of 15p mid is about fair value atm.

Looking to buy more once the gold and silver price settles and looks like moving back up.

[highly geared] 11/8/2020 13:13

Froth being blown off gold and silvers critically overbought short term status. Suspect gold will settle in the low $1900’s and consolidate.

[32campomar] 11/8/2020 12:50

GPM down sharply, Looks like a big over reaction. At these levels GPS only worth 11p!

[noirua] 11/8/2020 11:51

In the era of modern medicine, some of the first concerns about vaccines causing death date to isolated, but high profile past vaccine safety incidents.

The “Cutter Incident” in 1955 involved a flaw in the Salk polio vaccine manufacturing process at Cutter Laboratories that led to production of substantial amounts of what was thought to be inactivated vaccine that contained live poliovirus.
The result has been called “…one of the worst pharmaceutical disasters in US history”[11], with 40,000 cases of polio resulting in 51 cases of permanent paralysis and five deaths among vaccinated individuals, and 113 cases of paralysis and five deaths among contacts of vaccinated individuals [11,12].

As a result of the Cutter Incident, the US government implemented much more vigilant monitoring and regulation of the vaccine industry [13].
The Food and Drug Administration (FDA) now requires extensive testing to evaluate the safety and efficacy of vaccines prior to licensure.
After licensure, FDA requires ongoing lot-release testing and manufacturing facility inspections.
Additionally, manufacturers are required to conduct post-licensure safety monitoring for their products and report to the FDA [14,15].

[32campomar] 11/8/2020 10:20

Russia claiming it now has a working vaccine might be adding to risk off trades & putting pressure on gold

[noirua] 11/8/2020 10:00

Added more shares at 16p. No idea where the shakeout in gold and silver prices is taking us. I guess many are waiting for a point to jump back in after profit taking. Silver should get back to $29 more quickly than gold to $2,060.

[phoebusav] 10/8/2020 14:51

Yep. Gold, silver, GDXJ and GPM all moving up nicely.

[noirua] 10/8/2020 13:20

Gold looks to be holding firm today so far as well as silver. Profit taking on Thursday and Friday will hopefully end today before gold marches on to test the $2,100 level. Silver should go over 30p.

May be a scramble to buy gold and silver shares back again.

[davebowler] 09/8/2020 14:27

HTtps://www.thisismoney.co.uk/money/markets/article-8597289/Now-gold-tipped-reach-3-500-ounce-amid-stock-market-turmoil.html

[noirua] 09/8/2020 12:45

different world - 09 Aug 2020 - 09:22:26 - 2566 of 2567 Golden Prospect Precious Metals Limited - GPM
Why gold looks set to continue to rise. Good to see the hedge funds take it up the rear end:-

[noirua] 05/8/2020 15:33

The weakness of the $ and C$ against sterling has held back the NAV of GPM - move has been about 5%. However, gold and particularly silver shares are well up again today ranging from 1% to 9%. There are some small caps in Australia, USA and Canada with risers ranging to 46% - Investigator Resources up 46%.

The weak $ and C$ is great for the miners in gold and silver based in those countries as this pushed the gold a silver price up - profits will rise rapidly and hopefully dividends with it. The share values converted into sterling will be a negative factor unless the worm turns once more. Political moves by President Donald Trump going forward to November are uncertain as he tries to hit the barn door with his blockbuster.

[noirua] 05/8/2020 00:47

Silver chart:
Gold chart: