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Keg, Mr Cowboy Pickle and other investors - here is a correspondence with RK about the reported Inventory numbers. All others can skip my post. Read from bottom up, as it is an Email thread
AS of 12/31/10 SFMI’s inventory represented only ore transport costs. Company decided that mill operating costs in 2010 should be expensed as the mill was in start-up.
During Q1, SFMI continued with that policy. In addition, no ore was transported during Q1 due to winter conditions on the mountain. That’s why inventory has not changed.
SFMI’s CFO and auditors are being very conservative in their accounting pronouncements.
The second qtr. ending June 30, 2011, the Company will expand their note disclosure/discussion to better explain the accounting during this current period ( ½ way through 2nd qtr).
From:
Sent: Tuesday, May 17, 2011 8:17 PM
To: yes@yesinternational.com
Subject: Re: concerning 10Q
Thank you for your response, but that description was already to be had, within the 10Q, which I read already.
Insight is what I was asking for as to you current valuation rationale and to what extent was work or progress, being for the whole first quarter, as inventory represented was not changed for the quarter but expenses increased.
If you are stating that the valuation for inventory at year end is the lower of estimated cost incurred or estimated net realizable value, then the whole milling operation to date, has only a worth 300k per asset value?
If per stock pile,then all the tailing is worth 300k
Finished product has already been reported at 8k so that cannot be subjective to the inventory numbers as it is already sold to the smelter and already reported within the annual report.
Please inform the valuation means, because investment decisions will be made due to your response.
As again, thank you very much for your time
xxxxxx
In a message dated 5/17/2011 4:28:30 P.M. Eastern Daylight Time, yes@yesinternational.com writes:
Inventories are stated at the lower of average costs incurred
or estimated net realizable value. Major types of inventories include materials and supplies and metals product inventory, which is determined by the stage at which the ore is in the production process (stockpiled ore, work in process and finished goods).
Materials and supplies inventory are valued at the lower of average cost or net realizable value.
Stockpiled ore inventory represents ore that has been mined, hauled to the surface, and is available for further processing. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained metal ounces or pounds (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to a stockpile based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the ore, including applicable overhead, depreciation, depletion and amortization relating to mining operations, and removed at each stockpile’s average cost per recoverable unit.
Work in process inventory represents materials that are currently in the process of being converted to a saleable product and includes inventories in our milling process. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines and stockpiles, plus the in-process conversion costs, including applicable depreciation relating to the process facilities incurred to that point in the process.
Finished goods inventory includes bullion doré and concentrates at our operations, bullion doré in transit to refiners and bullion dore in our accounts at refineries. Inventories are valued at the lower of full cost of production or net realizable value based on current metals prices.
From:
Sent: Tuesday, May 17, 2011 4:23 PM
To: yes@yesinternational.com
Subject: concerning 10Q
I am a shareholder and have been for years. This is the first time I feel the need to contact you on the company and its regulatory filings, due to the dramatic drop in SP that we saw today. Please feel free to use Accounting terminology if need be. My question is on the reporting for Inventory for the 10Q for 2011.
MARCH 31, 2011
DECEMBER 31, 2010
(UNAUDITED)
(AUDITED)
ASSETS
Cash
$ 81,567
$ 61,530
Inventories
352,911
352,911
Total current assets
434,478
414,441
Question on 10Q:
On an accounting stand point, why did the 10Q not reflect the additional concentrate that was put through the mill?
Whether it is a percentage of completion or other means for the calculation of inventory available for sales. As Y/E 2010 and the 1st Qtr Inventory amounts in the B.S. are identical, represented at $352,911. Though investor relations and all other expense cats. went up along with milling overhead charges, but the reflecting of the additional concentrate did not move the asset numbers presented. Even if representation at the lower of cost, raw tailings may be identified as lower than processed material, but processed material should have been carried on the books at a higher value, as it is closer to being available for sale, but not at market value for raw Au or Ag.
Thank you for your time and attention to my question
Sincerely,
xxxxxx
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The message was checked by ESET NOD32 Antivirus.
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Bought another chunk. Cant hold back a good thing. Done with posting today. Good luck to all that bought more today and that traded at the low SP.
0.103 and more to come...........
I am going to make some serious unrealized bucks for today.
My buys today have netted me 11.25% unrealized gains so far, for those shares, as the SP has went back up to 0.09. This should close about 0.10 - 0.12 in my views as people who dumped will want to get back in on the cheap. Too bad not all will be able to get back in as some longs here has already acquired their shares.
I wish I bought more, but cant be too greedy due to hindsight. As I still have a bunch of 0.02+ cent shares and also still some more at 0.35.
Still in the Green but looking for more Gold = LONG all the WAY.
The parent corp was harder to purchase but some people are still selling.
I still see 300K worth of Au and Ag...... anyone have different numbers?
I had the same feeling as to the amount of inventory number. I feel that they need to ramp up production too. My calc's as for the tonnage and stuff for the press release is as follows (if anyone has better numbers please feel free to update me):
2.61 tonnes of concentrate containing an average of 81.19 oz. of gold and 94.97 oz. of silver.
ton oz total price worth
2.61 81.19 211.91 $1,477.00 $312,985.01
2.61 94.97 247.87 $33.00 $8,179.77
Au, Ag worth $321,164.78
tons 3005 Days in Qtr of work 60 Tons per day 50.083
BTW, I bought more of both Corps today. Up 8% already. Sweet
hey keg:
I dont think they want to over-state the worth of the inventory till assay report are verifiable by outside sources or third party lab. Following as Per the 10Q
Inventories:
Inventories are stated at the lower of average costs incurred or estimated net realizable value. Major types of inventories include materials and supplies and metals product inventory, which is determined by the stage at which the ore is in the production process (stockpiled ore,work in process and finished goods).
Materials and supplies inventory are valued at the lower of average cost or net realizable value. Stockpiled ore inventory represents ore that has been mined, hauled to the surface, and is available for further processing. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained metal ounces or pounds
(based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to a stockpile based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the ore, including applicable overhead, depreciation, depletion and amortization relating to mining operations, and removed at each stockpile’s average cost per recoverable unit.
Work in process inventory represents materials that are currently in the process of being converted to a saleable product and includes inventories in our milling process.
In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines and stockpiles, plus the in-process conversion costs, including applicable depreciation relating to the process facilities incurred to that point in the process.
Finished goods inventory includes bullion doré and concentrates at our operations, bullion doré in transit to refiners and bullion dore in our accounts at refineries. Inventories are valued at the lower of full cost of production or net realizable value based on current metals prices.
Dont like to write here much any more but..............
You keep going back to how much money they need, in regards to the 10K reporting for operations. 10K's are AS AT reports. Since it is an AS AT report, the 7 mil needed as stated in the 10K, was at 12/31/2010. Since then, they have secured a LOC of 7 mil, as of recent, after 1/01/2011. So let that 7 mil rest already.
Money is avail if needed. Equity financing is better than debt financing. Shares for work is better than cash outflow. Belief in the possible up tick of SP is way better than milking a company for cash in salaries.
Again: statements of going concern and continued OPS is normal for a start-up.
I was speaking of Rev's not Income. As income is the end product after taking out expenses. So your lower number would be almost like a gross income number. If you take out all business expenses, then you will have the Net Income number or profits. Rev's are at the top of the Income statement prior to all and any deductions or you can say cash is brought in by a business from sales.
Folks:
Dont get me wrong......... THIS IS GREAT NEWS, in my eyes. I have been in SFMI for a long while and the recent new press release is fantastic. It is just the beginning of better days.
Like I said before, from a flat empty piece of land - to building a mill - and now to now a REAL money maker. How many Ops do you get to get into somethings from a dream, on the ground floor???
So what if my prioir calls on SP was a little off, I am still going to be STINKING RICH and REAL SOON.
BTW, only investors need write to me, because I dont waste time on Morons.
LONG AND STRONG.
my calcs,
Belle Peck ore dump up to Dec 14, 2010
concentrate 1463 avg/ton milled spot price worth
one ton 2000 gold 185.74 135.87 1,354.00 $183,966.37
% .7315 silver 319.54 233.74 28.75 $6,720.13
$190,686.49
anyone have a calc to share???
3 Q's and one K.
Those are some great pictures!. Thanks Bobby Joe. I remember back when it was just a field and they were just starting to build the mill. I wish I went to the SH meeting.......... Maybe this year if they have another visitor/shareholder's meeting, I can make it there.
Thanks again.
they probably cut all the trees down back then to sure up the mine walls and ceiling.
For what we think this one will go and how high the SP might reach, why would you want to sell off before year end to offset past gains? I would hold and accumulate at this point. Sub 0.30 is a great price, in my eyes.
The big "What if"......... What if you sell off for you minimal tax offsets and in the same day, major news hits and you dont have to shares anymore? That would really suck.
Anyway, the sell off, for a realized short term loss to offset your previous realized short term gains = $0.00 gains/profits for the year, or minimal gains. They only reason that I would sell off an equity for a tax write-off is and only if the security is under water and will never float back up.
We all think we know that SFMI will be the creme de la creme. Also, WASH trades rules will kill you as it will realize only the gain portion and wipe out your wanted losses, if you trade in and out within 30 days. All it does is jack up the price of your current shares.
Like you said, to each their own, as to the way people like to play the market game.
I am looking LONG and want the big bucks. Greed is GOOD! I love paying long term capital gains taxes at 15%, because when I pay taxes, that means I am making money.
I bought at .35 and am not taking a write-off for this stock. Not worth it!
As the realized lost will count towards off setting short term gains. The name of the game here is LONG TERM GAINS. Look for the 15% cap gains hit not the 35% short term.
Thanks for the weather update, Bobby. Up here, it is COLD. My snow thrower froze last night and I had to hit it with a hairdryer to defrost the pull start. My corp is closed for the day, so no work for me. Lucky its nice and warm over there, so that the mill can operate. hahahahah More money for us in the long run.
Go SFMI..............
I personally like both the parent and the baby company. I am invested in both and am looking/waiting for a BIG PAYOUT. Currently I am over 100's% gains, and I am avg up when I see fit.
As for where these stocks will end up, is anyone's guess. The sky is the limit, but I am looking for a couple of dollars in the distant future and over 0.50 in the near and mid-term. If it gets there, it will be great, if I am off on my estimates as to time, that is fine too. I am just sitting around waiting for the news on the smelt and the funds hiting the bank. That should give us a reasonable guessimate as to potential future cash flow for this and the baby corp.
This stock I traded out of a while back and bought back in, but this time for long term investing goals. The baby corp I have been in since the sub 0.02 and avg up, have some over 0.35.
I hope my scenario helps, as I cannot tell others to buy or not. My gut feeling is, for me it is a great play.
Hey BOBBY:
any snow over there in the mine area?
It is a blizzard over here in the NorthEast.
With my magic hat on and crystal ball glowing tells me .68 cents. Just a wild guess. No one can really say where the prices will land in the future, unless they put their money in and push it to a certain point, at a given time.
I will say one thing and that is that the prices will go up as the companies go on producing. More production and good news will = a really nice price jump for the long haul. Slow ans steady, as the story goes.
when the Sp hits, the ladies will be knocking down the doors........... flowers and candy never hold up the cold hard cash in the pockets
A short thought, before my well wishes for all.
The only way the company can report anything prior to the actual money hitting the bank is to put out a statement as like, "we are expecting........... to be confirmed later.......and so on"
The news will come after the actual transfer of the fund. I wish the transfer was prior to Xmas, but a New Year's Gift will be great too.
Also the speculation as to the amount of gold and silver and what it is worth to the company is pretty irrelevant, since the real issue here is when will the cash hit the books and be reported. The actual generating of income and revenues that most of us longs seek, is the real story that we are looking for. From a zero do nothing corp, on just a concept and the hope of one man and his family, to a fully functioning and money producing corp as we will soon have, will make us all a "Pretty Penny and MORE."
Years with our hopes and dreams, and days to the realization of it.
Merry X-mas and a prosperous New Year to all. (especially the Longs)
A short thought, before my well wishes for all.
The only way the company can report anything prior to the actual money hitting the bank is to put out a statement as like, "we are expecting........... to be confirmed later.......and so on"
The news will come after the actual transfer of the fund. I wish the transfer was prior to Xmas, but a New Year's Gift will be great too.
Also the speculation as to the amount of gold and silver and what it is worth to the company is pretty irrelevant, since the real issue here is when will the cash hit the books and be reported. The actual generating of income and revenues that most of us longs seek, is the real story that we are looking for. From a zero do nothing corp, on just a concept and the hope of one man and his family, to a fully functioning and money producing corp as we will soon have, will make us all a "Pretty Penny and MORE."
Years with our hopes and dreams, and days to the realization of it.
Merry X-mas and a prosperous New Year to all. (especially the Longs)
Didnt the # of sharesauthorized double, due to the point that the company wanted to have additional shares on hand for the aquisition of other properties?
Since some people would rather have shares/some shares instead of a clean cash payout (due to the potential positive outlook of the company), the Authorized shares were supposed to double.
Anyone to confirn this point?
Just in case there are newbies, just coming on this board and are reading the old posts............ SFMI is burning thru a whopping 100K per month while generating revenues and soon to be reported major income.
The old posts of the 1 million dollar a month burn rate is a MYTH that some has posted in the past!
Now this is confirmed by the interview given by our Board of Directors and the President of the Corp, Mr PQ.
I do not have PM rights, as I do not believe in paying for my blog on this site. Call me cheap!
as for your inquiry:
PQ = Pierre Quilliam, Chairman of the Board of SFMI and the parent company. Also the President too.
SFMI SFMI SFMI........... any hostile people in here that will delete my post?
The parent is looking great, per growth in SP. Wish I had the same amount as I did last time I sold out. Position is still good, but my greed is hungry for more shares.
Mr Cowboy Pickel.......... They didnt annouce the next one yet, did they?
Last time around the SP didnt go up enough for me to get there, aka quit my job, but this time around, who knows. hahahahaha
I read some people was grabbing samples at this past SHM. They are cutting into our profit. Where was the armed guard? Shoot to kill. We will keep your rock, to me, on the down low. Secret.
You think tomorrow will be news day or Tues or Weds? I think Tues will be the day.
I dont think they will buy back stock, as SFMI is doing. I think more in the line of more puchases as they stated in PR. They are a holdings Corp, and accummulation is the name of the game. Also the expanding of purchases will increase the number of mines that SFMI will have to dig in and generate more cash for both companies. I do not think they will let anyone else mine the properties that they work so hard in doing DD and just get a little cash from it. Best case scenarios are to sell off SFMI or just keep free cashflow from operations of the mines and set up latter generations for the far future.
I own both corps. This one more so than the other. Both has great potential for multipling in SP. The other I traded out earlier for major gains and bought back in again, recently in around the .04, after the intitial bloodbath (that I stated in earlier posted and got beaten down for saying so).
This one, I have held since the under .02 and still holding and avg up and down on along the way. I figure, you have to be in it to win it, just WAY BETTER ODDS than the lottery system. Paper gains in both are outstanding so far, but greedy is good, if not GREAT!!!! and Xmas is just around the corner.
Believe me when I state that PQ is freakin Santa this year!
Mr Anton. Yes I screwed up my typing............ beat me down on my last post. hahahahha
How many shares would the Corp buy back? 15% of moeny generated from dore bars sale.
Just for fun:
Lets say it is only made of silver..............
and calc'ed at 28 bucks on spot and after the smelt only 200lbs is pure, and the stock price on avg was 23 cents during the sneaky buy back these weeks............. there will not be enough shares to go around and buy more of, when the numbers for the better smelt comes out. PPS will shoot up, as the supply and demand curve makes a major shift. Crazy scenario, to just talk that it is only silver in those bars, as gold was seen by others that were able to go to the SHM. Freakng work sucks for holding me back from attending. Mr Cowboy Pickle still owes me a chunk of gold filled rock. hahahah As I owe him some drinks.
Us long will be rich, just in time for Xmas. I have been calling for a great Xmas for a while, maybe my earlier calls were a little too early.
This year will be the year
JUST SOME INFO FROM THE WEB
http://www.transworldnews.com/NewsStory.aspx?id=650361&aut=57699
http://www.prlog.org/11157338-actc-leads-nightly-small-cap-business-report-alto-vygo-sreh-sfmi.html
http://emailwire.com/release/54010-5-OTC-Stock-Profiles-To-Watch-With-Strong-Volitilty-Entering-Trading-For-Dec-17th-2010-ACTC-ALTO-VYGO-SREH-SFMI.html
WE ARE NOT ALONE.............. PEOPLE ARE WATCHING OUR MOVEMENTS.........
Good call. As I see it, both companies came a long way from an idea to now generating real revenues and is now a REAL GOLD COMPANY.
Unlike many out there, people invest on a dream that is based on geo reports. Our dreams will become reality, and real soon as the numbers comes rolling out. Income is income and more will hit the books as more concentrate is sent on a monthly basis to the smelter.
Hey Anton, please dont take me serious aboutthe fat finger thing. Was just messsing around.
$6.30
If I think this year end will bring 0.63, then next year it has to become a 10X'er if all you say that might happen, happens.
All things being equal, we should be hopping real soon.
MC that is One Cool Cat!!!
Let those that do not dare to jump from a sinking ship (El Shorties), go down with the ship.
For us LONGs, we are going to sail on to the beaches of Paradise with sand made of GOLD!
Long Strong and Santa is Coming to Town!
think Anton has Fat Fingers. As his mis-typings are of the "next key kind".
The man is on a mission to spread info and I thank him for it.
Now I remember who I should have "THANK'ed"!!! Couldnt for the life of me remember, who brought up the parent company, for the longest time (on SFMI's blog)
Last time around, I bought sub-penny and sold for 0.05+. This time around, I got back in at 0.04 and money is filling the "Pit" again.
Thanks Bobby!!!!
YEAREND = 0.63
Hello all:
I read a lot, but dont post much. Nothing worst than New Jersey and those dumb "JUG HANDLES".
Just conversation, not beating anyone down, especially you, so dont get me wrong. As relating to SFMI and it's price flux:
You stated = "You can't lose more than 100% of your gains, that was never stated that you would,"
Totally agree to your statement.
You stated = "but you can lose more than 100% of initial investment. The cost of the shares don't include the commission"
This one I disagree on, as initial investment includes the commission that you paid to purchase the shares along with the money you paid for the shares. Your total gains is the end value of the shares at time of sale, less money paid for the stock, less the commission paid for both the purchase and the sale of said shares.
You stated = "Therefore, if the stock becomes worthless you have lost 100% of your initial plus paid commission. Even though it might be 8 bucks, it's still a loss over and above the cost of the shares."
Your initial cost for the stocks has to include both the money paid for the stock, plus the commission associated to the purchase. As you cannot bypass the commission or else you would not get the shares. So yes, you do lose 100% of your invested money in the shares itself, if the shares are worthless, but also the 100% of the commission you paid to obtain those stocks. As both together is your initial cost to obtain the shares, you can not go over 100% of initial cost for an investment for a lost.
Let's not get into non-covered naked puts and calls....... or margins. If we do, this board will no longer hold any of the good DD that some here so selflessly give for free.
Dreaming of a Gold and Green X-mas!!!!!
I have been trying to keep quiet but you people forced me to type. You people must learn of the difference of Purchase Price, Total Cost of investment, Gains and Losses or don’t bother to play the stock game. Even worse than those who mislead other are those that try to be condescending to others and brag of a High School Education, as that is not serving you well and you really should further your education.
Basic Investment calculations are as follow...........
Example:
You have your Total Cost = 100 dollars = PPS plus fees
You have your gains = 500 percent (paper gains)
Gain amount is 500 dollars = 100 percent of your total gains
Total portfolio value = 600 dollars
If you lose 20% of your gain = 100 dollars
If you lose 50% of your gains = 250 dollars
If you lose 100% of your gains = 500 dollars = no more gains
At that point, you break even and do not have any further Gains. If the stock goes lower, it cuts into you Total cost and you will have a Loss (paper loss). You cannot lose more than 100% of your Gains!!!
If you want to get into Realized Gains and losses, that will have to happen in another posting, further down the line.
Loved the SFMI Mill pictures Bobby, and how are you other "REAL" LONGS doing? Happy Thanksgiving all.