Marketing is a good start. Being focused is another.
You are sitting on a multi billion dollar worth deposit of tin & tantalite, prices are booming, yet no one cares, or seems to care ?
A quick review.
50% of Abu Dabbab previously mentioned as a low cost potentially world's largest producer of tantalite ( tantalum ).
We are constantly told H.C.Starck ( tantalum ) negotiations are ongoing. A ten year offtake agreement signed November 2007, then eighteen months later it appears someone has not read the fine print & back to the negotiation table. What exactly does price & cost escalations mean ? Formula ? And then throw in a new proposed synthetic product to make it all little more complicated.
Personally I do not get it. It seems to have totally eluded JT & the current board that feldspar production is potentially worth more than the tantalum that has the Abu Dabbab project on permanent " hold " thanks to H.C.Starck ( and where are all those other tantalum producer negotiations we have been told about over the years ? )
H.C. Starck 650,000 lbs pa. at say a discounted $80 lb. $ 52mio pa. 1,500,000 tonnes of feldspar at say $50 a tonne. $ 75mio pa. Tin, 1,500 tpa at say a discounted $27,000t $ 40.5 mio pa. Low labour costs.
Feldspar was originally planned to be a phase two project, the above figures suggest a feldspar contract should be the priority, sell the tin into the spot market, stockpile the tantalite until a contract comes along or sell the tantalite into a rapidly looming world shortage.
With a 20 year mine life, it is easy to calculate a multi billion dollar resource in the ground, sounds very nice, but where are the contracts bankers need to see to get it extracted & sold ? When was the last time someone spoke to the Europeans about Feldspar ? September 2003 ?
"Plus" 40% of Heemskirk tin deposit Tasmania ( 60% Stellar ) JORC Compliant Mineral Resource of 4.4 mt grading 1.1% tin or 49,000 tonnes of contained tin for the three deposits identified to date (Queen Hill, Montana and Severn) within the Heemskirk Tin Project. Stellar keeps their shareholders regularly updated with public announcements, the GIP Secretary must have been asleep "again" Friday when Stellar made another positive release, not the first time.
Plus Eritrean areas prospective for gold & copper.
GIP Market Cap. $28mio
So why does no one care or have they given up all hope on GIP ? Ten years of statements of finance, offtake agreements, etc. negotiations that have not materialised to any substantial worth, and a market place that constantly is not adequately informed, e.g.
08/07/2010 Commissioned independent geological consultant to prepare mineral resources & ore reserves on Abu Dabbab to Canadian National instrument 43-101 Resource and Reserve Classification. Seven months later, no details released.
Tell the market 28/09/2010 Spin Off of Eritrean and Tasmanian Tin Assets into Newco but over five months later provide absolutely no details of same.
Tell the market you have commissioned valuations of spin off assets 28/09/2010 yet over five months later provide absolutely no details of what it is worth, apart from restating, the market under values it.
Appoint Corporate Advisors 15/10/2010, Xmas holidays are over, what did they have to say ?
I had to wonder at the Alkane presentation announcement last Friday. Have a look at the board members of Alkane, GIP and both companies activities. Rare earths (ALK) & minor earth in demand (GIP). One is rocketing the other going nowhere. Then there is Stellar (SRZ) riding the back of 60% of Heemskirk tin deposit and soaring tin price. A few more cents there & Stellars market capitalisation will equal GIP.
Yes, things take time to happen, but why is GIP the poor cousin compared to Alkane & Stellar ? The GIP Board had the intestinal fortitude to sack the CEO, will they do the same to the Company Secretary ?
Corporate advisors ? What about some Corporate Marketers, a new company secretary & better market information before we are all diluted yet again by another massively discounted issue ?
Yes it has dragged it out for near ten years, but what about the good old aussie " fair go ? " Gandel announced January 18 2011 he had officially taken hold of the reins in relation to corporate & project finance, product & sales marketing. How about some acknowledgement he has listened to the many emails that have been sent to him & what gets posted here ? If Gipters have put up with 10 years of going nowhere, this poster believes a businessman with the credentials & runs on the board (Gandel) deserves a fair go and crack at it. That for mine is at least three months.
The decision to commence trial alluvial tin mining at Abu Dabbab is the most positive news we have heard, men & equipment finally to be on the ground, a major step forward.
Recent announcements tell us JT had not finished dotting the "i"s & crossing the "t"s, very poor after all this time, but it has been noticed & is being addressed.
Where is the new CEO ? I would rather have Gandel & Dunlop running the show than some new CEO who has to get up to speed at our expense. Then let us not forget, JT's termination must have come at a price / pay out of balance of contract. Should be a mention of that in the half yearly accounts which will hopefully also inform the market of the current price of feldspar, tantalite & tin as well so potential investors can do their own calculations.
In my opinion, the Company Secretary may well be skilled but has to much on his plate with other companies, but then again, it would not be the first time I have been wrong in my life so how about we all have a look at his history.
http://investing.businessweek.com/research/stocks/people/person.asp?personId=13401044&ticker=GIP:AU . Click on the full background link.
Looking forward to better times. The Penny GURU.
AR1 Price at posting:
4.5¢ Sentiment: None Disclosure: Held
(20min delay)