RE: GGPSP13 Aug 2020 22:35
Sorry Jerry , but I must respectfully disagree with your thinking.
Exploration companies are an investment gamble. They invite investors to gamble their cash on a hope. 19 out of 20 EP's go bust and you lose your cash.
When the ( not the 1 in 20 ), but the 1 in 1000 hits the bulls eye , the cash rolls in, They only need so much cash to continue the exploration , so the balance can be redistributed ( as a one off special divi ) back to reward the original backers including the CEOs who also put in major sums.
The wise investor handles his own individual tax situation,- best if in a SIPP or an ISA. Then use the cash to reinvest in more shares back in the Co. at their reduced share price if you wish - and if it is a company like GGP with a host more fantastic prospects, then time and more discovery re-
instates the SP - and hope for the same again.
No-one is a loser. The " gambling " investor has won.
If it is a one off gold strike, one invests the divi in a new venture.
But the fact is , with a 1 in a 1000 type GGP, not seen before by me in a lifetime , GGP will see me out on their journey of discovery ,operating in a totally stable economic and political environment, in one of the largest and richest mineral resource regions on the globe, owning a string of potential super dicoveries; so why not - discover , - JV with the largest and the best, - sell out and move on to the next project. In this style of company the SP and the M Cap will both continue to grow. There are very few gold explorers with M Caps of £550 Mil.( and growing )
Loads of cash flow,- pay your loyal shareholders fair special one off divis , - in my view a journey I am very happy to make for me and my children and grandchildren.
Leave the mining and processing to the specialist big boys.
Tig