Mining is difficult and sometimes it can go wrong - Granada Gold is one such example. We try to learn from this case study by speaking with President and CEO Frank Basa. The management team acquired this asset as a halted company and then built it to $120M market cap Gold company. Frank says the market crashed and that he ruined Granada Gold Mine by not acting quickly enough. He says the asset was designed to be sold, but they weren't able to transact. Today, Granada Gold is sitting at $10M market cap with not a lot of cash. We try to understand what happened and how much blame can be attributed to the market conditions and how much was management?
Is there any value left? Not that it's of any comfort to the shareholders who have lost most of their money but Frank describes what he thinks they have done and what it is that they think they have today.
And what are they doing right now? What is it going to cost? Is it realistic? Is the market is nervous? Frank has stopped paying himself but does remunerate himself with paper. He owes shareholders an apology which he does. We try to work out what information they have, what is conventional and what is gut feel and just talk.
- Company Overview
- Granada Gold Hit: What Happened?
- Recent Drill Results
- Junior Dividend Payer: What were the Costs of Establishing the Company and What is its Worth Today
- What are They Doing with the Data They Have?
- Fixing Their Mistakes: Cheaper to Drill Underground & is That the Best Way to Go Forward? When Will We See a Feasibility Study?
- Financial Position: What Will They be Able to do with the Money They Have
- Market Dynamics: Can Granada Gold Survive?
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