Geovic Mining (TSX:GMC) Increases Cash Position
How many junior mining companies are seeing an increase in cash these days? What if it's a NON-DILUTIVE cash infusion? Even better!
Geovic Mining Corp (GMC-TSX) actually increased its cash position by US$7 million to US$73.3 million in Q3 2008, ending September 30.Geovic's quarterly news release read "The increase was principally due to a $15.2 million minority interest contribution from the Cameroonian shareholders, who have contributed approximately $20 million to Geovic Cameroon Plc ("GeoCam") through September 30th."
So that is great news for their shareholders.
Just as wildly implausible – their stock responded! It went up! To reflect the new cash value. You might not think that is a big deal, but it is. There are many companies trading well below their cash value. In this market, every asset is a liability. It's just something that drains cash. Assets that don't produce cash flow have NO value. There is no value for metal in the ground.
In fact, Geovic is one of the best performing junior mining stocks in the world right now. It is up over 50% since its lows in September. Few stocks went up in October. This was despite cobalt dropping from $32 - $20 per pound during this time.
The likely reason was that the company delayed construction of their cobalt mine in Africa. It has great economics, but nobody cares in this market. The market is happy that the company is willing to hoard its cash.
The fact the company has an active following that is willing to reward the stock for good news is a strong sign that Geovic will be one of the leaders when metal prices start to bounce back.
Keith Schaefer
Vanguard Shareholder Solutions Inc.
1205-1095 W. Pender St.
Vancouver, B.C.
V6C 2M6
P: 604-608-0824
F: 604-688-0854
800: 866-801-0779
www.vanguardsolutions.ca
This is good news and an
This is good news and an inspiration to new mining companies that making names in mining industries. This company has an active following that is willing to reward the stock for good news is a strong sign that Geovic will be one of the leaders when metal prices start to bounce back. In relation to economic industries, nowadays, it’s really hard to bring back our old ways of standard living. We still are facing up all this economic downturns that result into too much poverty, starvation and unemployment to some of our people. But on the other hand some jobs still exist even in times of hard life. One of this is a Realtor. It is said being Realtor is a good career. A Realtor during a housing boom can rake in the cash, especially if they’re able to work in an expensive market. Take Marin County for instance – Marin County is the county of the North Bay Area around San Francisco. Unfortunately, it is also close to Oakland. However, with the housing market being what it is, you can't get a house for really cheap in California with poor credit, even with a payday loan to help out with a deposit. Still, some in the Realtor trade are resorting to installment loans to keep afloat. Just try to save more and always keep in mind that too many expenses is unwanted at this time of recession.
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