drbubb Posted December 24, 2019 Report Share Posted December 24, 2019 GRZ.t / Gold Reserve Corp - "undervalued" if Venezuela pays GRZ.t : all-data: 10yr: 5yr: 3yr: 2yr: 1yr: 6mo: 10d / Last: $1.98 +0.01 - Yr.L: $1.82 3 years xx Gold Reserve Inc. (“Gold Reserve” or the “Company”) is engaged in the business of acquiring, exploring and developing mining projects. The Company is an exploration stage company incorporated in 1998 under the laws of the Yukon Territory, Canada and continued to Alberta, Canada in September 2014. The Company is the successor issuer to Gold Reserve Corporation which was incorporated in 1956. In 1992, the Company acquired and began developing what is now known as the Brisas gold and copper project, located in the historic Km 88 mining district of the State of Bolivar in southeastern Venezuela (the “Brisas Project”). From 1992 to 2009, the Company invested close to US $300 million in acquisition, land exploration, development, equipment, and engineering costs, developing the Brisas Project into what management believed was a world class mining project. In April 2008 the Bolivarian Republic of Venezuela revoked the Authorization to Affect, eliminating the Company’s ability to exploit the Brisas Project. In October 2009, the Company filed a Request for Arbitration under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes (“ICSID”) of the World Bank, in Washington D.C., against the Bolivarian Republic of Venezuela seeking compensation for the losses caused by the actions of Venezuela that terminated our Brisas Project in violation of the terms of the Treaty between the Government of Canada and the Government of Venezuela for the Promotion and Protection of Investments. In September 2014, the ICSID Tribunal unanimously awarded us an Award of $740.3 million. In July 2016, we signed a Settlement Agreement (as amended) whereby Venezuela agreed to pay us $792 million to satisfy the Award and $240 million for the purchase of the Mining Data for a total of approximately $1.032 billion payable in monthly installments. The first $240 million to be received by Gold Reserve from Venezuela is related to the sale of the Mining Data. Venezuela has paid the Company approximately $254 million pursuant to the Settlement Agreement. The remaining unpaid amount of approximately $859 million (including interest of approximately $80 million) is, as of June 2019, now delinquent. The Company is currently working on collecting the payments contemplated under the Settlement Agreement (See Brisas Arbitral Award section) and executing the Mixed Company Agreement (See Mixed Company section). The Company maintains its executive/administrative office at 999 West Riverside Ave., Suite 401, Spokane, Washington 99201 USA, and is listed on the Toronto Venture Exchange (symbol: GRZ.V) and the OTCQX Markets Exchange (symbol: GDRZF). The Company employs 7 people in the United States. == Venezuela Bolivar : Strange Situation: In a nutshell you need to take enough cash for your entire time in Venezuela. If you use any type of money machine or credit card you will pay twice as much as you will if you exchange your cash on the black market… GRZ.v ASSETS: + $ 65M : Cash & securities with 9/30/19 bo ok value of $64.9M + $ 11M : Tax refund receivable= $ 76M : Cash & tax receivables + $ 11M : Equipment value + $ 20M : my estimate for 45% of mining project, Siembra Minera Project, where Venezuela is not performing on its obligations for 55%. + $ 20M, being 15% of Tax Loss Carryforwards (US$134.4 Million), see below= $ 51M : Other Assets + $792M settlement (less $254M already received, excluding writedown on Venez. govt. Notes), accruing interest. In June 2019, the Company completed a distribution of approximately $76 million or $0.76 per share to holders of Class A Shares as a return of capital. The return of capital was completed pursuant to a court-approved plan of arrangement transaction + $ 80M interest on the above, at Libor + + $240M due from "sale of data"= $859M Net of payment received in 2019 +$65M = $924M = $986 Million / 99M shares outstanding: US$9.96/sh x1.31= C$13.05 - but reported Book Value is just C$xx M (per Yahoo Finance.)> $341 Million, taking cash at 90% ($59M), other assets at 50% ($25M), Venez. Amount at 30% ($257M) = $341M / 99M = $3.44 /sh. = C$4.50 /sh. ===== QUARTERLY & Annual Financial statements September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 Form 40F September 30, 2018 Link to comment Share on other sites More sharing options...
drbubb Posted December 24, 2019 Author Report Share Posted December 24, 2019 (From 3rd Q- 2019 FINANCIALS) The terms of the Settlement Agreement also included Venezuela's obligation to make available to an escrow agent negotiable financial instruments, with a face value of at least $350 million, partially guaranteeing the payment obligations to the Company. As of the date of this report, the collateral has not yet been provided to the escrow agent and it is unclear if and when Venezuela will comply with this particular obligation of the Settlement Agreement. Obligations Due Upon Collection of the Award and Sale of Mining Data Pursuant to a 2012 restructuring of convertible notes, we issued Contingent Value Rights ("CVRs") that entitle the holders to an aggregate of 5.466% of proceeds associated with the collection of the Award, sale of Mining Data or an enterprise sale (the "Proceeds"), less amounts sufficient to pay or reserve for taxes payable, certain associated professional fees and expenses not to exceed $10 million, any accrued operating expenses as of the date of the receipt of Proceeds not to exceed $1 million and the balance of any remaining Notes and accrued interest thereon (the "Net Proceeds"). We have been advised by a CVR holder that it believes that the Company’s 45% interest in Siembra Minera represents “Proceeds” for purposes of the CVRs and as such it believes the CVR holders are entitled to the value of 5.466% of that interest. For a variety of reasons, the Board does not agree with that position and believes it is inconsistent with the CVRs and the terms and manner upon which we reached settlement as to the Award with the Venezuelan government. We continue discussions with the CVR holder on this subject and it is not possible at this time to know the outcome of this matter. In September 2019 management reduced its original estimate of the income tax due on previous amounts received from the sale of Mining Data. The effect of this revision was to increase the net proceeds from the sale of the Mining Data subject to the CVR and as a result, the Company recorded an increase in its obligation to the CVR holders by approximately $0.3 million. As of September 30, 2019, the total cumulative estimated obligation due pursuant to the terms of the CVR from the sale of the Mining Data and collection of the Award was approximately $10.0 million, of which $9.7 million has been distributed to CVR holders. / 2 / 21 Following the receipt, if any, of additional funds pursuant to the Settlement Agreement and after applicable payments of Net Proceeds to holders of our CVRs and participants under our Bonus Plan, we expect to distribute to our shareholders a substantial majority of any remaining proceeds, subject to applicable regulatory requirements and retaining sufficient reserves for operating expenses, contractual obligations, accounts payable and income taxes, and any obligations arising as a result of the future collection of the remaining amounts related to the Award. Financial Overview Our overall financial position is influenced by the proceeds previously received pursuant to the Settlement Agreement, related payment obligations and the return of capital completed in the second quarter of 2019 in accordance with the Plan of Arrangement. Recent operating results and overall financial position and liquidity are impacted by Venezuela's failure to honor its payment obligations under the Settlement Agreement in a timely manner, ongoing expenses associated with activities related to the Siembra Minera Project, obligations associated with collections under the Settlement Agreement, U.S. and Canadian Sanctions and costs associated with maintaining our legal and regulatory obligations in good standing. As discussed elsewhere in this management's discussion and analysis, the U.S. and Canadian Sanctions have and will continue to adversely impact our ability to collect the remaining balance of the Award plus interest from Venezuela and, until Sanctions are lifted impede our ability to develop the Siembra Minera Project. Historically we have financed our operations through the issuance of common stock, other equity securities and debt. The timing of any future investments or transactions if any, and the amounts that may be required cannot be determined at this time and are subject to available cash, the continued collection, if any, of the proceeds associated with the collection of the Award and/or future financings, if any. We have only one operating segment, the exploration and development of mineral properties Our longer-term funding requirements may be adversely impacted by the timing of the collection of the amounts due pursuant to the Settlement Agreement, the timing and amount of distributions made to shareholders, if any, financial market conditions, industry conditions, regulatory approvals or other unknown or unpredictable conditions and, as a result, there can be no assurance that additional funding will be available or, if available, offered on acceptable terms. Liquidity and Capital Resources At September 30, 2019, we had cash and cash equivalents of approximately $65.0 million which represents a decrease from December 31, 2018 of approximately $82.7 million. The net decrease was primarily due to a return of capital to shareholders pursuant to the Plan of Arrangement as more fully described in the “Financing Activities” section below. 2019 Change 2018 Cash and cash equivalents $ 64,952,134 $ (82,694,219) $ 147,646,353 As of September 30, 2019, we had financial resources including cash, cash equivalents and marketable securities totaling approximately $65.1 million, equipment with a carrying value of approximately $11.7 million (See Note 6 to the consolidated financial statements), income tax receivable of approximately $10.8 million and short-term financial obligations consisting of accounts payable, accrued expenses, contingent value rights and lease liability of approximately $2.1 million. We have no revenue producing operations at this time. Our future working capital position is dependent upon the receipt of the remaining balance of the Award plus interest pursuant to the Settlement Agreement or its collection in the relevant legal jurisdictions. Although we believe, subsequent to the return of capital pursuant to the Plan of Arrangement, that we will have sufficient working capital to carry on our activities for the next 12 to 24 months, our actual cash burn-rate may require us to seek additional sources of funding to ensure our ability to continue our activities in the normal course. As discussed elsewhere in this management's discussion and analysis, the U.S. and Canadian Sanctions have and will continue to adversely impact our ability to collect the remaining balance of the Award plus interest from Venezuela and, until Sanctions are lifted, significantly impede our ability to develop the Siembra Minera Project. > https://www.goldreserveinc.com/wp-content/uploads/2019/11/Sep2019Financials.pdf Link to comment Share on other sites More sharing options...
drbubb Posted December 24, 2019 Author Report Share Posted December 24, 2019 At September 30, 2019, we had the following U.S. and Canadian tax loss carry forwards stated in U.S. dollars. U.S. Canadian Expires $ 1,973,368 2026 3,662,314 2027 13,959,070 2028 13,229,114 2029 16,343,835 2030 18,301,312 2031 5,309,986 2032 7,719,628 2033 8,944,359 2034 12,767,412 2035 15,179,110 2036 11,447,131 2037 413,307 2038 3,459,717 2039 1,707,742 USD: $ 1,707,742 CAD: $132,709,663 (expressed in USD) = US$134.4 Million > NOTE#10: pg.xx : https://www.goldreserveinc.com/wp-content/uploads/2019/11/Sep2019Financials.pdf Link to comment Share on other sites More sharing options...
drbubb Posted December 24, 2019 Author Report Share Posted December 24, 2019 Venezuelan Bolivar - shows impact of continuing hyperinflation Steve H. Hanke Thanks to the collapse of the bolivar, Venezuela has earned the dreadful distinction of being the world’s only country that is experiencing hyperinflation. Today, its annual inflation rate is 121,583%/yr (see the accompanying chart). By hyperinflation standards, that’s a relatively mild rate, putting Venezuela at the 23rd rank out of the world’s 58 episodes of hyperinflation. What makes Venezuela’s hyperinflation so brutal is that it has lasted for 27 months. Only four of the 58 episodes recorded in history have lasted longer. Prof. Steve H. Hanke So, it’s clear what Venezuela’s big problem is: hyperinflation. The first order of business for any new government in Venezuela is to slay the hyperinflation dragon. This can be done within 24 hours with the introduction of a currency board. > https://www.marketoracle.co.uk/Article64112.html Link to comment Share on other sites More sharing options...
drbubb Posted March 10, 2022 Author Report Share Posted March 10, 2022 Gold Reserve considers legal action as Venezuela revokes mineral rights of Siembra Minera GRZ.t ... update: C$1.09 -0.27, -19.85% x Gold Reserve (TSX.V: GRZ) announced today that the Ministry of Mines of Venezuela issued a Resolution that purports to revoke the mining rights of the Venezuelan JV, Siembra Minera SA. (55% owned by Venezuela – 45% owned by Gold Reserve) for alleged non-compliance with certain Venezuelan mining regulations. According to the company's statement, the Resolution states that Siembra Minera SA may exercise remedies concerning the revocation in administrative proceedings or court proceedings in Venezuela. "The Venezuelan government has a controlling 55% interest in Siembra Minera SA and any alleged non-compliance by Siembra Minera SA would be due to failure or inaction by the Venezuelan government," the company said in a statement. Furthermore, Gold Reserve added that the government of Venezuela is in non-compliance with its obligations to Siembra Minera SA and the company under the Settlement and Joint Venture Agreement that it signed with the company in 2016. Consequently, the company said it is considering all legal rights and remedies available to it under the Settlement Agreement and applicable law. President Doug Belanger stated, "The government appears to be essentially cancelling its own rights to the property, and therefore, those of Gold Reserve as a minority shareholder and yet the Government of Venezuela is the one out of compliance." Link to comment Share on other sites More sharing options...
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