Geologix Exploration, a favorite company of Peter Grandich, held a conference call today that I participated in and wanted to report the highlights.
For those who know about resource calculations, Geologix changed the method of calculating the resource in October than they did in June. Full explanation was given as to how and why this was done. Sounded Ok to me..
One very important point was that at year end Geologix expects to have C$7 million cash on hand, which is estimated to be adequate for 2009 operating needs. In the current (horrible) financing environment, that is excellent news. They can continue operating.
They would like to own 100% of the mine with Silver Standard and realize that the 1st choice for doing that is an equity financing that just isn’t favorable to shareholders at this time. They are therefore looking at other options that can be good for everyone, including current shareholders.
My personal opinion is that Geologix is not only a keeper, but an accumulator. Management feels that, if – a big if, markets return to normal in the next year or so, mine resource increases could justify a share price of anywhere from $4 per share to $8 or so. They have doubled the resource in 5 months. Impressive.
If you have interest in these kinds of mining and exporation stocks, I highly recommend that you try a Risk Free Trial Subscription in International Speculator from Casey Research.
