IKN

Hereditary sloth instructs me

Great Panther Silver $GPL (GPR.to) is re-writing the way junior mining companies do business

The traditional way junior mining companies do business:

  • Raise some capital
  • Explore property
  • Discover, develop
  • Raise larger amount for capex to build mine
  • Go into production
  • Make profit from mining
And now, the wonderful, new, innovative business model that Great Panther Silver (GPL) (GPR.to) has created in order to go about its business:
  • Raise some capital
  • Explore property
  • Discover, develop
  • Raise larger amount for capex to build mine
  • Go into production
  • Raise more money to keep operations running
  • Produce more metal
  • Raise more money to keep operations running
  • Produce more metal
  • etc
The news today that GPR has filed a short-form prospectus to raise up to CAD$80m in the next two years fits right in with this model. As you can see here…

…it’s only when silver prices go sky high that this company makes any sort of net profit. In fact, add all those bars up and the total comes to +$3.3m and I’ll take bets on that number turning negative once the 3q14 results are published. In other words, over the last six years this company has made zero profit from its operations, while all the time pretending to be a successful miner. Robert Archer is a standing joke.

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