Ann: Breakthrough Gold Discoveries Confirmed at D, page-3

Time to have a discussion about GOR management.
They discovered Gruyere ,decided they didnt have the technical expertise (which the vast majority of explorers lack)to build and operate a mine ,so they sold half of Gruyere to Goldfields (smart decision)and in return a mine was built and they got some cash .How has this benefited shareholders???
Well in fact very little because the cash and cash flow from Gruyere has been sucked up by DEG with virtually nothing left for shareholders .This has resulted in a poor share price performance for GOR for several years in a historic gold bull market.
WHY did they invest in DEG ,that is the question .They only have a minority position so it would appear that DEG management just ignores them and has decided not to do what GOR did and bring in a senior partner, but in stead pursue the risky strategy of going it alone.This has resulted in multiple capital raises by DEG in which GOR has been forced to participate .
Why did they( GOR management) do this .They must have assumed that a big boy would takeover DEG and they (GOR) would make a tidy profit and perhaps retain a net interest in the resultant mine .This hasn’t happened as quite obviously DEG management wants their personal gravy train to continue and they have the hubris (in common with many explorers)to think they can go it alone .So GOR is just stuck with an investment that hasn’t worked out .Permits for this mine are not yet approved and time lines are delayed and costs continue to escalate.
GOR would in fact have been much better to have bought shares in say Agnico ,this is a quality company with great management which pays a dividend .Share price up 30% plus whilst DEG is down .Shareholders in GOR would have been much better rewarded with this strategy.
So what do we have now ,well its a hybrid mess .
If in fact Gor wants to be a holding company it needs to be that .This would mean selling off DEG and other assets and using the cash to take a position in a producing gold mine or gold mines that someone else operates .This would require a staff of less than 10.
Or it needs to be an operating company it just can’t be this hybrid mess.