Looks to me like they've raised the $ for the payments they have made from share sales, not from production. Even if you accept the "best" case scenario (that they've been lying to you about the production being made in order to try to produce more in value than appears likely, given not having moved the operations beyond early start up stages until very recently) that still leaves you needing to know the SAME things you haven't known before now...
The values in the tails will control whether or not they'll make money, break even, or lose money, with every ton they process...
The debt isn't a secret. Read the filings. The only element of the debt that IS a secret is the due date... which they've done all they can do to obfuscate.
Still looks to me like what they've designed was designed knowing that it means they'll be lucky to break even within the next six months or so... while there are a lot of people here expecting results that are massively better than that.
IMO the values in the tails aren't likely to be close to those they've promoted while they've purposefully NOT been doing the work to PROVE what those values are... rather than avoiding doing that to enable the promotion effort... which means they've been purposefully transferring the "risk" of what the tails DO contain (or not) from the company to you...
They raised money selling shares while encouraging inflated expectations...
Now, having gotten it to where they are, they'll be happy with something much less than break even, or something that is only approaching close to it... because...
At break even OR LESS, THEY are already making money hand over fist... given only the combination of promotion that makes money from shares being sold, and more, as long as the "rent" does get paid while management removes 30% of the gross production for themselves before paying the rent to themselves...
They can control the feedstocks used as inputs... which, note, would require that they DO know well enough what it is that is in them... even though they've not been particularly honest about that ???
With control over the feedstocks... they can maximize the value that THEY receive... by minimizing the value that YOU receive... and that is what the set up they've designed is designed to enable. You're still not close to SFMI making money at the point where they are rolling in it... but, hey... It isn't like you didn't hear it here ???
In a normal mining operation, the objective is to maximize the total value in the throughput by controlling the values on the FINDING side. You want to characterize the grades as knowns long before mining them... to be able to maximize the value per share from the mining effort.
Here, they've designed a system INSTEAD that has a purposeful LACK of effort applied in finding or proving up significant volumes of the higher grades that would be needed for maximizing overall value for shareholders. They've instead created a design that allows THEM to benefit disproportionately from enabling lesser results, by design, on purpose. High volumes of low grade materials that are available can be used to sustain a mass in throughput, while controlled inputs, being paired with a "dual" input structure... means a design for maximizing something OTHER than the overall value, but, a more specific value target...
In other words, instead of a design to maximize the values made, they've designed a system to DILUTE values made in low volumes of the higher grades... while sustaining volumes in throughput by the use of known lower grades. That is... they've designed a system that is INTENDED to target "break even" or less... while transferring 30% of gross production to them... which maximizes the value... for them... and makes shares of SFMI basically worthless... not even holding the value of an option on success.
They DO control the PR effort... spend a lot on it... so, make money selling shares... and make money by taking the gold while all they need is for SFMI to cover the cost of transferring the values to them...
The combination of the performance you see, including the struggles to dodge the "smelter contract" problems, etc., and replace them with the Sinker Tunnel takeoffs, all paired with the structure of the "deals" and the financing, pretty much reveals all... the fact the "deals" are all "non arms length" transactions ? Figure it out...
The system they've designed... is designed for purpose... but it is not particularly fault tolerant. So, what happens if there is a "fault" that occurs ?
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AI
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