Q: Can I please have your view on GPAC?
5i Research Answer:
GPAC is quite small at $77M market cap, down 14% this year. It has $22M cash, no revenue, losses and negative cash flow. Insiders own 6%. It has developing mining assets in PNG and Australia, close to producing regions. Management has experience, and the PNG asset in particular has potential, but there is also political risk here. A lot of drilling and time is still needed here, and more capital is going to be required. While we do not see any red flags beyond the usual small cap development risks, we do not see enough short term potential here to offset the risk. We think there will be lots of time to buy as drill results come through and/or more money is raised here.