Golden Phoenix Minerals Inc. (GPXM) of Sparks, Nevada has announced a new addition to their ongoing cost cutting program. PR Newswire reports:
“…100% deferral of salaries for corporate officers until further notice.”
CEO David A. Caldwell and President Robert P. Martin will accept stock in their own company instead of salaries. The private sale will not impact daily trading. Golden Phoenix owns two molybdenum mines in Ontario, Canada, as well as the Mineral Ridge property near Silver Peak, Nevada. Production at the Ontario mines will not be affected.
This strikes me as the way things ought to be done. It’s not often one finds the owners “taking one for the team” while the workers continue to draw paychecks. Imagine New York bankers making such an announcement. You’ll never hear the boys at Goldman Sachs say any such thing. They’re too busy negotiating their welfare payments from the U.S. Treasury Dept. to think of anything like this.
GPXM, which trades on the OTC Bulletin Board, is currently selling at $0.03/share down 90% YTD - thanks largely to the credit crunch. It had been as high as $0.55/share last year. Molybdenum is normaly a secondary product of copper mining, as the two are often found together. It is used in both steel production and the aircraft industry.
According to CPM, a commodities research group publishing on Mineweb, the outlook for molybdenum is decreasing supply due to lack of financing for new mines, and increased demand from the aircraft industry over the next two years. Chinese exports of Molybdenum are also projected to be much lower in the near future. Can the good guys hold on? Stay tuned.
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