in Proceedings to Confirm $740 Million Award Instituted by Gold Reserve
SPOKANE, Wash.--(BUSINESS WIRE)--Mar. 30, 2015-- Gold Reserve Inc. (TSX.V:GRZ) (OTCQB:GDRZF) (the “Company”) is pleased to report on developments in the proceedings instituted in the U.S. District Court for the District of Columbia to confirm the US $740 million arbitral award dated September 22, 2014 (the “Award”), rendered against the Bolivarian Republic of Venezuela (“Venezuela”). On March 27, 2015, the Court entered a default against Venezuela following its failure to file an appearance within the prescribed deadlines in the proceedings instituted by the Company.
buyuranium, thanks for that post. In the past days, I've gone from being a pretty solid pessimist to somewhat optimistic. I couple of months ago I had thoughts of getting close to nothing. Maybe adding to my position isn't too risky.
Good luck to us all.
Just to clarify my point, I was mildly in favor all along of settling with VZ simply because I didn't think they would pay. That we should be happy getting a substantial portion of the award.
VZ's penalty for delaying or not paying is simply the cost of LIBOR interest which is peanuts compared to what they pay to borrow money.
Now, from what I read, where non-payment is considered default, and if the seizure of assets is as easy and enforceable as some say, then the ball is our court. No settlement.
So perhaps it would be a mistake for GRZ to negotiate a settlement with VZ. To negotiate is to essentially settle for less than the full award amount, making it more appealing for VZ to pay up sooner rather than later.
But if VZ's assets, especially cash, can be easily seized, then hell, let them feckers come knocking on OUR door with an offer. Settling really comes down to how confident each side is in their stance.
I will bite my tongue and simply say I am quite sure (but don't have first-hand knowledge) the company is doing something. Probably quite a bit. We just don't know exactly what.
It's about time for an official update from the company. Enough has transpired since the last one and there is clearly a lot of suppositions out there about where we are now and where we are heading.
If no official update is forthcoming, one of the message board regulars should email DB and post his response here.
Personally I would doubt it. Yahoo shows the float is only about 51 million shares. This stock is very illiquid and thinly traded. Even buying a few thousand shares will cause the price to rise significantly. Then selling is another problem.
It seems to me the risk/reward just isn't there for a buyer of significance. Even if they could acquire a significant amount of shares with the intention of offsetting their loss, they have no way of guaranteeing their ability to dispose of those shares when the time comes and under favorable terms...., unless VZ doesn't have to actually sell back into the market.
backdoc, I am traveling, have limited resources and a very slow connection. My post was based on memory.
I believe management's compensation comes after taxes, which Doug estimated at 15%
So, with a $740 award, the taxes are $111 million.
Management's compensation, again, I believe, is 2% of the first $200 million, and then 5% percent beyond that.
So, 15% of $740 million is $111 million, leaving $629 million.
Doug and his boys, for doing such an awesome job, get 2% of the first $200 million, giving them $4 million.
Then they get 5% of the next $429 million, giving them another $21.45 million, for a total of $25.45 million.
I guess the number I posted of $1.50 per share we won't see is taxes AND bonuses, which comes out to $1.46 per share, based on 93 million shares.
I was doing this from recollection, but still, factoring in taxes and management bonuses gives us about $1.50 per share than the gross amount awarded by the ICSID.
Thanks for calling me out on that, backdoc.
Don't forget management's cut of the award. It's substantial. I don't recall the formula and don't feel like finding it, but it ends up being somewhere around $1.50 per share based on the full $740 million award and 93 million shares.
If VZ wants to pay an award which is the equivalent of $6 a share, we'd get less than $5.
In the past couple of months, we knew the specific dates of pending events. I guess there is at least one more hurdle in front of us, but no mention of when that might happen.
...but with poor earnings, no dividend, impending CAPEX cuts, low oil prices and being highly leveraged, why is everyone interested?
I was interested before knowing the above factors and still am after knowing. It's the low share price and the potential for a return of 2x, 3x or more.
Not owning this stock (yet) is a luxury for me. I know it's not easy for current owners (been there, done that).
Good luck to all!
based on how far crude oil and this stock have fallen from their recent highs, but I'm concerned seeing the company's EPS is $-.05.
Sure, I realize oil has fallen far and fast but is that the main why SD is losing money? How was their business earlier in the year when oild was higher?
Most of the other oil and gas stocks I follow (trusts and such) are all soundly in the black.
Thanks in advance.