market. The sudden price move is due to the announcement that GNXP has received Class 3 permit for trenching and drilling at Nantawa Project.
Based on the new permit, the company has made highly optimistic projections on its future operations and attracted investors’ attention. Still, the results are expected to come up.[BANNER]
Guinness Exploration, Inc. is an exploration-stage company, incorporated in Nevada. Historical data shows that GNXP has traded much higher over the last 6 months, when the price reached $1.25 per share. However, since February this year the stock has moved down to trade under $1. Currently, the price is going up, though it is too soon to be considered as a long-term bullish trend.
The 2010 first quarter results of GNXP don’t look much promising. The company has not generated any revenues and gross profits and it has had exploration expenses. Guinness has also suffered an operating loss, though it still has more assets than liabilities on its balance sheet.
According to the records, the company has sufficient cash to cover its business activities during the next quarter of 2010.
In its 8-K report, GNXP announced it had “established several gold and silver drill targets and have mapped the exact coordinates for additional trenching and an initial drill program”. However, it is highly dependent on its current drilling project.
Based on this fact, the investors should carefully stay tuned with the GNXP news released.
