I invested in Gryphon on the strength of their Banfora project in Burkina Faso, which they started in mid 2005. It had and has the hallmarks of a big project.
Since then they (Mngt) have shown a remarkable disposition to running into all sorts of countries in which they have no expertise, and start new projects which have not delivered any results of merit.
And in the meantime, also deliver great results from Banfora.
Whats more, they have then gone into the stock picking business by buying a primarily illiquid amount of stock in Papillion. For what reason? Did they ever think this would force Papillion into merging with them or what? The mngt surely needs a good lesson in Mergers and Acquisitions 101. Never explained what the line of thought/strategy was, if any.
I remain of the opinion they should focus on what they tell shareholders they are going to do with the money they want from them.
Just as a few goldminers have been asked to come clean with their costs of production, I think a few explorers should come clean with what they are raising money from shareholders for, and stick to it. If I want to invest in Papillion, I will do so from my own research and analysis with my own money. I have not and will not need any advice from the Gryphon management team.
GRY Price at posting:
51.5¢ Sentiment: None Disclosure: Held
