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Not necessarily. If the amount of ore in the ground could be substantiated, it could be worth up to 50 cents a share on that basis alone.
Coloso is reportedly up to 1500 meters long by 100 meters wide and at least 84 meters deep. If the ore is 85% of that cube and be at a minimum of 3.5 tons per cubic meter and taking that number by 3 to cover the other 3 veins, you have over 100 million tons of ore.
At a supposed valuation of $5 per ton in the ground, you are over 50 cents, just in the ground. And as we know ore is worth a lot more out of the ground than it is in the ground.
Chew on that a bit.
I share your excitement, but you may be undercalling the production. Take a look at post #54708, where Bob is talking about the drill holes in Coloso and what he was surmising as to how big the vein might be. In his calculations he was using 3.5 tons as the minimum material weight per cubic meter.
No matter how you bake it the ripper is going to test the abilities of the processors, the truckers and the port facility to keep up.
Every day this story only gets bigger.
I know you mentioned this before, but what do you think this ripper bucket will do in production in terms of tons per hour, per day?
If someone comes in with cash in hand, I am not going to throw him out just because he may not be dressed to the T's.
I like everyone would love to see audited financials, uplisting, etc., but last time I checked we don't have the votes to force the issue.
If dress code is what moves you, you might want to look at Goldman Sachs or Morgan Stanley. No don't. Some of my friends at MS don't dress that well.
Simply put, that is the way the operation is run at Guadalupe. Bob runs the show in a a very relaxed fashion. I have only seen him pictured in a hard-hat while at the port. There they have THEIR rules.
I work in a world filled with rules on top of rules and most of what they do is add to costs and reduce productivity. Bottom line is that I could care less about how visitors to Guadalupe are dressed. My concern is more directed to what they will do for the business and how they will help the business succeed. If this gentleman from Bao signs a long term purchase agreement with CWRN he could come dressed as Kermit the Frog and I would applaud.
Remember appearances only add to your style points. Results are what counts.
I doubt if anyone believes that Baosteel would be looking to buy the company. IMO Baosteel is looking to enter into a long term purchase agreement for ore. Period
This is confusing or is it?!!!
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Okay, here are pictures from today, Feb 1 2012.. Cross section of Coloso behind the pit and top of Coloso near the back and pictures of Boasteel Guys, and pictures of crushing and pictures overburden being removed from top of Coloso.. We have uncovered about 1/3 of Coloso along the seam, should finish Coloso within 24 months, once the overburden is removed, about 2 million tons left, and then start on the other seams… Shipment going out will be 60k/mt….. All is fine, just working in news blackout for now… Long haul ahead and a long time to work this mine.. Not panicked about anything and for sure not the price of the stock, we don't plan on selling any for at lease 24 months, and it won't be penny stocks at that time… Thanks Bob
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What is the 2 million ton figure? Does that refer to the overburden yet to be removed? Based on previous numbers from Bob, if they are going to finish Coloso in 24 months, there is going to be some heavy duty production in the near term. From his email to you on October 7th, he estimated 1,392,300 metric tons just from the 300 meter section he was talking about then or 39 handymaxs. He later expanded the width and depth, theoretically making the number much larger for a 1500 meter long Coloso. Coloso up to 100 meters wide and 80+ meters deep on the outside.
All you can say is WOW!!!
This ship the CMA CGM ORCA V. PP819E is a container ship. Not ours.
My guess is that he had no choice. It was the end of the year, invoices were due and there were no other options. I doubtr if the decision to do the PIPE was taken lightly, JMHO
I agree on this being not a bad day. Low volume lower close. RSI had some steam taken out of it and is now below 70.
I know that pennies are not typically technically driven, but this the kind of down day you want to see if it were so.
Big challenge now is topping/clearing the 200 day. Need to close at or above .0085 to be somewhat safe.
RM Care to post a view of Level 2. TIA
My recollection from the original PR on the JV or the quarterly letter to the shareholders from last fall (2010) is that the royalty per vehicle was $250 per. I tried to go back to the original pr on yahoo, but they have been deleted.
I agree.
With CWRN we have a ”On one hand and the on the other hand” situation.
I am convinced that we have a viable company with a producing mine. No small feat. In a perfect world, we will have consistently growing production and shipping.
And “on the other hand” we have a grossly underperforming stock.
In a perfect world we would have a stock that
a.) Would not have a CE and
b.) Would be fully reporting and current
c.) Had a management team that was consistently excited to share what was going on with the company. Results of the additional drilling program would be an example.
But as we know that is not yet the situation. Many promises on the transparency front and some hints of excitability, but no consistent results as of yet.
My hope is that in the near future we have not only an growing operation that consistently delivers, but a stock effort that matches.
Company results will eventually deliver a good stock price, but only after the impediments we currently have are removed.
Good post Sparks. What you are saying makes a lot of sense to most.
What do you think the chances are that both NIR and Walters will decide to walk away from their suits and timescales as to those actions? Are there any required actions or depos scheduled in the next month or so that might drive them to act, sooner rather than later?
You could be right about the scope and cost. I don't know, but I doubt it was in their case, as they were truly and remain today a shoestring operation. All that I know is that in the case of LY*N, it was done and I believe that it could be done in the case of CWRN, if the power to be wanted it done. There has to be a reason why he doesn't want it to happen at this time.
Further to your question as to the name of a company which was listed with a CE and 3 months later completed the requirements to be listed as Current, in my limited knowledge of pinks, I can think of one, LY*N, which did so in 2008 or 2009. I won't attest to the 90 days, but it was in that neighborhood. As to whether the task was as difficult as in the case of CWRN, I don't know, but logic would make one believe that a fashion apparel manufacturer with many retail customers and inventory would somewhat be as challenging.
Having said that, the bottom line is that Bob can have done what ever Bob wants to have done. He not only runs the company, but is, by virtue of share count, the company. His focus appears to be on the operational side of the business, that is managing an ongoing business and not on managing the stock price.
I like many on this board believe that removal of the CE and/or uplisting will move this stock price significantly and rapidly, but that will only happen if Bob want's it to happen. I am not going to complain as others on the board may because it will be to no avail. Bob is the decider, period.
In my email correspondence with Bob, I have found him to be very business-like and knowledgeable in replying to my questions. Therefore I will trust that, since I personally know nothing about the inner workings of his plans, there is a very valid reason for not being more into managing the stock price at this time.
Check out SRCH. Up 20% in last hour on big volume. Something is happening, but I don't know what. Anyone have any ideas?
Check out SRCH. Up about 20% on big volume in the last hour. Is there news? What's driving it?
Searchlight Minerals (SRCH.) Junior gold miner. Up 50% today on big news. Should run much higher. They are sitting on 10 million ounces +/- of gold at their Clarkdale, AZ site. Check out today's PR for the details.
Check out Searchlight Minerals (SRCH.) Junior gold miner. Up 50% today on big news. Should run much higher. They are sitting on 10 million ounces +/- of gold at their Clarkdale, AZ site. Check out today's PR for the details.
Raven. You are probably correct in your statement about the 2010 results and I believe that the root cause of your concern is all in the timing and corporate policies related to "revenue recognition." If I remember correctly, at the end of Q3 they reported revenues based on receiving a purchase order or orders, not on shipments out the door. Similarly, I think that revenues in Q4 and Q1 were understated for the same reason - the timing of revenue recognition.
As to the controller having to deal with the accounts receivable, they will work themselves out over time. Either they will convert to cash as the buyer pays the bill or it will be written off as a bad debt if the receivable becomes un-collectable. The only real challenges for a comptroller in the case of HLNT is managing the cash flow to provide JIT money collections to pay the bills until the NIR matter is resolved.
Someone in a post used the analogy " you don't go to divorce court driving your new Ferrari and wearing a $3000 suit," in describing how HLNT had to not appear to the court in dealing with the NIR matter. It probably was Sparks. He does such a great job making legalese understandable. What an excellent contributor.
In any event imho HLNT is playing the role to the "T."
Wise you may be on to something. Typically the seller takes credit for the sale in full at the time of purchase and the the lease, done typically through a third party, is taken as a form of payment with the leasing company holding the paper and payments going to them.
Now if HLNT has provided the units on consignment and is acting as the third party leasing company and as lease payments are made to it, taking their part of the sale into revenues at that time and sending the excess to the dealer, we are talking about an entirely different kettle of fish. This, though, would require resources to manage that part of the business, which I didn't see any evidence of in the quarterly earnings report.
Like you, I still to this day believe that the revenues were understated in the first quarter and only time will tell what smoke and mirrors mechanisms were used to achieve them. They will eventually be recognized and once the NIR situation is cleared up, maybe we will go back to having a more open and transparent management team. There are many tricks to the trade in when you recognize revenues, all of them legal. HLNT has in my opinion become a wiz at them.
MJ, I agree. I don't see Bob getting into a situation where he is not in total control. He is a bright guy who has been around the block a few times and won't allow himself to be put in a situation where he will be used just for his expertise. He has figured it out and knows that he probably has a baby tiger on his hands. Why give up all he has to be part of a larger concern? After all these years, he is just having too much fun with it. If he works this right, in time he can just buy whatever mining concern he wants. Money talks and with each succeeding shipment, the more money he has to talk with.
I know that he needs to dot the i's and cross the t's on any merger, but the sooner he puts the done agreement out there the better. There is a lot bubbling just below the surface and once something catalyzes the situation, this stock will explode.
As to the merger into a new mining company, it could be as simple as having identified a shell which is listed on the OTC.QB and merging into that and Bob still remains in control. These shells can be merged into for a song and you are then, shazam, a OTC.QB reporting company.
It can be but does not have to be an existing miner. Time will tell.
You are correct in your statements about the gross margin, but wise is absolutely correct in saying that from your calculation, the dealer had cost of sales of $100K in a 3 day event. That would not say a lot about the rest of the dealer community.
I believe that based on what comments we have from them on this board, that they are a bright, energetic, competent group. Based on the $100k from the one event and there being about 30 other dealers in the mix, I doubt if they would still be here if they only had a quarterly gross profit from the hydrogen units of an average of about $10k. Hard to make payroll, rent, advertising, utilities, etc. from that.
I don't recall where the 200 per week came from, I believe it was based on an production employee who was re-butting a comment on how few units were being produced.
50 per week would work well to get to $400k in revenues. But then why would the company state in their Feb. 23rd SEC filing that they needed to use some of the dilutive increase in OS to pay for an increase in production space. You can produce 50 per week out of your garage and still have plenty of space for the wife's car.
I am still having trouble with the reported revenue numbers. I believe them to be under-reported.
It doesn't make sense that if they were producing 200 hydrogen units per week and getting them out the door to the dealer community, the only ways that revenues could be that low is for the units to have been shipped to the dealers on a consignment basis, with payment due after selling the unit, revenue being recognized whenever they got around to banking the check. The other possible reason for the revenue being so low is an accounting move to reduce the amount of accounts receivable from the previous taking credit for the sale at the time of receiving a signed PO.
The revenues reported are for about 500 units sold or a couple of weeks of production. Then when you add in the fees charged to new dealers to come on board, it probably represents even fewer units being sold. Honestly, I have an easier time believing in the "tooth fairy."
While I believe that management is doing what I believe they or their attorneys think is the right thing to do in light of the NIR matter, these are the things that happen in under-reporting, non-audited penny stock companies, but arguably it more often on the over side of the ledger.
I can't wait for the NIR matter to be resolved so that we can hopefully see how well this company is really doing.
I thought in the conference call that SG said that a PR with the information contained on the conference call would be put out today, Monday.
flyer.... what is the 50k tons? Capacity at the port? Or at mine?
If it is at mine, why were they able to have mined 118k tons prior to Jan 1?
Also any word that you have heard on the timing of the arrival of the new equipment?
TIA
I for one have never bought into the lack of PRs being caused by the lawsuits. Also I don't buy into the notion that the company is intentionally not communicating to the world because some shareholders may interfere with their activities in going after business with some entity, such as the Arkansas State Police.
My view has always been that the company has the belief that if they focus on building the business through profitable sales, that the share price would appreciate on its own.
My belief is that in microcaps, frequent PRs are a must to get more people talking about your company and your stock. The more that happens the quicker the share price will more fully reflect the value of the company. There is so much out there that the company could be PRing about, but all we get are the "sounds of silence."
micro.....you are correct in your statement that manipulation and not market forces are in control of this stock. And that will continue to be the case until such time as the company, while continuing to produce, delivers on their stated efforts to remove the CE and publish their promised financials.
Newton's laws of physics apply even to the stock market.
I find it incredulous that the ore is gone from the port, gone from the mine and the truckers not moving ore to the port. something is real fishy about those postings.
I will rely on what I can get out of the PRs.
200 per week suggests sales of over $2million for the quarter. (200x13x$800/unit average cost) That is more than the company did for all last year. This stock is grossly undervalued.
Why should we be lucky to get 50% margins? Everyone has always used 50%, but that is an educated guess, but people have used the same number no matter what the price of the ore used.
In reality cost is going to be a relatively fixed number per ton with the only variables being the cost of fuel relating to the cost of operating the machinery at the mine and the cost of trucking to the port. Everything else is relatively fixed or controlled by a contract.
We won't know the true costs until we get financials, but my guess is that it will be less than $90 per ton before amortization of the notes to buy the equipment.
Now that CWRN is almost ready to ship, I want to focus on valuation.
I read on some previous post that once the first revenues are received, the method of valuation on a mine goes from valuation on the basis of revenues to a valuation on the potential reserves of a property based on how much of the mineral is available on the property to be mined.
It also somehow at that time becomes a balance sheet item as an asset. Is there some mechanism to convert the value of the addition of the asset into income on the income statement? I know that oil companies change their valuation on the basis of increases or decreases in proven reserves. Is there something similar that happens with iron ore miners and how does it work?
Anyone who can enlighten me on this?
The Ioannis Theo is due into port at Ensenada on 16.03.2011 at 13:30
I have read the posts that the first ship is now expected to be another on the 24th or 25th.
I thought the Ioannis Theo was an ore carrier. Was that information incorrect or could it be that there are two ships due in a week apart? From the pics there appears to be more than enough ore to fill two ships.
Does anyone have any information on the ship arriving tomorrow?
What is happening? 9million shares traded in the last 15 minutes.
Any news out?
I think there will be a PR released before market tomorrow on the sales for February.
I can't imagine the CEO giving information like that in a radio interview if it has not already been disseminated through a proper release.
Any word on the Korean ship coming into port tomorrow morning? Anyone figure out where ATI is in the port?
Can anyone provide a level 2 screen on this stock? TIA