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The real answer is we don't know if the loan will be or has been paid back.
Based on the current company financial situation and lack of production or cash flow it doesn't seem likely to come from there. I suppose it is theoretically possible the company has gold in the carbon filters that can be cleaned out and sold. However, the last time they sold they "netted" a little over $26,000. A long way from the $166,000 needed.
The only other way I see they can cover the note is raising funds. Of the two options, this seems the more likely. But in my opinion that depends on primarily one person - Don Phillips. He's the deep pockets behind this outfit. I guess we'll find out on Monday if he put his money where his mouth is.
Couple of thoughts and responses...
First, I don't know if it is accurate to say Paul and his family have "profited" from this. I don't know what kind of personal investment(s) they have in the company (besides time and emotional investment). I don't think Paul's intent was to come into this to lose money or intentionally scam investors. He (and his family) very well could be bankrupt after all of this is over. But, what I call the "plundering of the treasury" is always one of the last stages of a failing entity (both companies and countries). It may be Paul "profiting" or it may just be getting what he can get back out, while he can.
Yes there were other red flags, like lackadaisical reporting, but that isn't an automatic or imminent sign of the end of a company. Many low budget operations flirt with these issues. However, the deception (or omission) of disclosing the company was subsidizing operation cost that Mar Mar was supposedly covering was where I came to the realization that this wasn't going to happen. Add the toxic loan terms and how that loan money was spent (paying back debts owed to family members) and it becomes overwhelmingly obvious the company is in it's final stages.
I understand if someone has a lot of shares and are feeling they are stuck with them and their best option is to ride it out. I don't understand anyone how anyone without any emotional attachment to the stock can rationalize purchasing more. There is no logical evidence to support that position.
The final straw for me was seeing the money from the toxic loan went to pay off debts owed to Paul's family members.
The final stage of any imploding company or country is the plundering of the treasury. The two biggest warning signs are there. Toxic debt and raiding the corporate assets by those in charge.
When family members are getting their money out, it's time to make sure your money is out too.
The bid doesn't need to be hammered between now and Monday for the noteholder to get a heck of deal. The 25 day low was set on 4/16 at .0051. 50% of that would mean they will be able to convert at .0026.
If gold were to go to $1,500 an ounce today would it affect today's share price of Mexus? No.
Also, Mexus has been 2 months away from production since November 2016. And that was when we had a JV. Now with no JV, a lack of equipment and no personnel (except a CEO) you expect Mexus to be producing in 2 months? Talk about nonsense statements.
There seem to be plenty of those coming from both sides.
Does the price of gold matter to mining companies? Yes.
Does the price of gold matter to mining companies that can't produce/ have no clear path to production of gold? No.
Does the price of gold matter to Mexus? There are many other issues that are more relevant/vital to Mexus success at this time than the price of gold. At this time the price of gold has minimal (if any) impact on Mexus' success until it figures out how to produce gold consistently.
Can we please move on from this topic?
All of what you've speculated may be plausible, but not logical. Why would a company take out a note on such poor terms if they have "deep pockets" to help get them over the crest? That's not a model most (if any) venture capitalist would follow.
Any CEO that thinks informing shareholders of company happenings is a waste of valuable time, because all shareholders do is poop all over everything, needs to rethink taking his/her company public. Comes with the territory and is not a legitimate excuse to give only half-truth updates and selective disclosures.
It's time to quit the high and mighty, ethical, hard working Paul routine. He's not been forthcoming to investors - to the point that it's been deception via omission. He may still be putting in the hours, but his credibility over the last 12 months has been damaged.
At this point message board chatter carries the same relevance as a PR put out by this CEO.
The March 8 PR stated gold sales of $26,000 and at the time the previous poster was the person who stated the sales came from the gold in the carbon filters. That is the most likely scenario for the 50-100 oz of gold sold that was being referred too. Maybe it will come out that MarMar did commit theft, but the previous post did not insinuate theft.
Here's a great example of where you start to stray from presenting an informative contrarian view, and begin to come across as a pot stirrer.
There's already enough shady happenings occurring with this company. You don't need to hurt your credibility by unessessarily trying to create more.
The announcement will be there was a delay in terminating the agreement with MarMar.
Would love to know what's being said on the other board. If the PR in February regarding recovery issues had them all wound up, this one must have sent them off the deep end. Where's 8? Would genuinely like to hear his response/defense to today's PR.
Also, any predictions on what kind of sweetheart terms Mexus will have to offer in order to get anyone to buy into the next round of capital fundraising?
I'm coming closer and closer to labeling this a scam - not quite there yet. We're past poor PR writing. There is a lack of transparency in this company. With that said, it is not reasonable to think the company would list every single thing that is happening - and that is not the expectation of most folks on these boards. But there comes a point that omitting information, and/or over promising becomes intentionally deceptive.
Five primary examples;
1. PT knew the recovery process was still months off, but played it as if it was "imminent".
2. There was no way the vat was going to be ready in the time frame initially promised when first announced.
3. The Jan 8th and Feb 16th PR's portraying the operations of Santa Elana was in the capable hands of MarMar so therefore the company could direct its attention on Ures, El Scorpio and/or San Felix.
4. No breakdown of $870,000 in general and administrative expenses for the last quarter.
5. No details on the (non) payment for San Felix that was due months ago.
Additionally, I'm honestly baffled by the language in the recent PR about the Julio vein. It adds no material value to the rest of the PR. The only reason I can comprehend that is in there is to try and offset the negative of the rest of the PR. In other words, its for pure hype. A common practice for a pump and dump scheme.
I'd like to think PT was making an honest effort, but lately I am sincerely questioning if that is the end game.
So 2+ years ago Mexus lacked the expertise and resources to mine Santa Elana itself. The only way it could move forward with Santa Elena was to bring on a new JV that was footing the cost. Now we are supposed to believe that with the same lack of expertise and even more debt and Mexus can do this without JV help?
Also, isn't Mexus 50/50 with MarMar at San Felix? Do they still own half?
Let's not forget we have 2 experts working on the recovery system for the last 6 months. So we should have gold... soon. After all we are in production, or are we. This PR states production will begin shortly after the hiring of staff.
Additionally, two months ago we were told a vat would be in place and operational within the next two to three weeks and producing withing 72 hours of set-up. Now were told it will be at least another 2 months before that is operational.
But hey at least they have the Julio quartz vein right? There's tons of gold there, except that we don't have the equipment or personnel to dig it out or the ability to recover it after we heap leach it. But those are minor details.
Besides, most mine start ups take 20 years and at least 2 JVs to get going. Mexus has minimal toxic debt, except for the note that some stated would be paid by the end of March and now the announcement of a non-dilutive capital raise plan.
Bottom line, set backs happen, but this is beyond a set back. All these attributes of Mexus and PT everyone likes to hang their hopes on have now faded away. Honesty, low debt, JV footing the cost... poof! Gone.
You do realize stock price goes up by encouraging folks to buy, not belittling those few who are still giving earnest consideration on whether or not to buy/sell.
Exxtol - nice post. I hope you realize there are many around here who are in the same boat as you.
It would be nice to have some rational discussion on this board without zealots, from both sides, rehashing their stockpile of platitudes.
Is it really that difficult to state actual production numbers? Why is it left to speculation how many ounces of gold was sold?
Honestly... what should be positive news is worded in a way to cast doubt and ambiguity. Par for the course.
5 million + shares have traded over the last week. This isn't one person selling.
Since even the most basic information in the article isn't accurate I would guess they are fake or really bad reports that I would not use to guide my investing.
From the main page of the linked article...
Mexus Gold US (MXSG) REPORT OVERVIEW
On March 6th, 2018, Mexus Gold US closed out the trading session at $0.02 (down 8.33%), compared to the previous day close of $0.02. The volume on the day was 859,192 (up 145.99%), compared to the company’s previous day volume of 349,283.
Now, clearly they haven't been able to execute - so there is little confidence by many that these two items will happen...
...I'm still here because I think they will be successful with at least one of them.
Stop blaming VNDM. He/She has rarely been the lowest one on the ask during the last couple of weeks.
They are likely not the person selling into the bid either. VNDM a straw man that investors have created to cope with/rationalize the poor stock price.
If so the next PR regarding Santa Elena should be one pouring of around 300oz.
Never my intention to, nor have I, called this a scam. My comment was only about the suggestion that people to buy at the ask in order to increase share price. Given the current climate of the stock/company that strategy doesn't make sense to me. After some positive news with some hard numbers behind it, my opinion about buying on the ask would change.
I'm still on the fence about this company. I'm watching, but not buying in again, yet. I give it 25% chance or less of succeeding. No science behind that percentage, just an anecdotal guestimate. Would love to be wrong because if things start going right, this has the potential to be big.
It appears you've made up your mind. Not sure anyone can convince you otherwise but I'll take one more shot.
Look at the link link DJ sent you.
The last sentence of the 2nd paragraph states;
The mine is now producing gold with the company looking to reach production of 10,000 tons a day by December, 2017.
That's a fair point.
At the end of the day an increasing stock price comes from creating demand and urgency. Ideally it would come from strong business fundamentals, but as you've illustrated, that is not always the case.
I understand what you are saying and agree that in order for stock price to go up investors have to eventually buy at the ask. However, there are other fundamentals that go with creating a demand/desire for the investor to buy at the ask. For example, the thought/fear that if they wait the price will go up. Essentially, there needs to be some urgency to buy.
Those fundamentals aren't present with this stock yet.
It doesn't not make financial sense for someone buy 100,000 shares at $.025 if they can buy it at $.021 just for the sake of buying at the ask.
I realize the tone of the PR is much more positive than the last one, but were back to the same old games.
There is nothing substantive that has changed from last PR to this one. By that I mean bankable numbers. This PR only fans the flames of speculation and hope.
We may see .03 early in the week, but I don't see this PR sustaining share price beyond that.
Not being negative, just a pragmatic view of how non-emotionally attached investors would look at this PR. There is no news to buy.
Enjoy your posts - especially the well thought out rationale.
Thank you, TML.
What you presented is in no way a formal agreement. There is nothing in there that would hold up in court. Maybe it truly is all they are working off of. If so, that's a scary (and unwise) way to do business.
Not trying to be difficult, but this kind of stuff is not as simple the two sentences try to make it. It's complicated and any potential conflicts should have been worked out and agreed upon ahead of time.
I understand what you are saying that by Mexus helping out it should help us get to the 50/50 payout faster. It's a fair point. My concern/objection to doing this is we should not be taking on toxic debt or diluting shares in order to help our JV with their expenses. The reason we partnered with a JV was to avoid taking on additional debt/expenses.
Additionally, is Mexus getting repaid for these costs out of the 95% profits since MarMar is obligated to cover 100%. If so, where is Mexus tracking that tab. It should be reported on the financials somewhere as an accounts receivable.
Again, this is assuming the money being spent on those things. Who knows? There could be other necessary places it is being spent and MarMar is covering all Elena expenses.
It's not painful to think. Anyone thinking should have the same questions.
First, I have no obvious agenda. I've been very transparent I am currently on the sidelines and why.
Second, I have stated no indication of what has been contributed towards expenses. I have no idea what was spent where, and neither does anyone else. That's the issue. This company has burned through a lot of money according the the last 10-Q. What was it spent on? Expenses that large typically go towards 3 things. Either labor (and in that I would include consulting expenses), equipment and assets (they did state they were building up a new structure to enclose the new Merrill Crowe, and operations (office supplies, electric bill etc.)
Let's look at those three categories.
Labor - Since Mexus had no employees in time reported by the 10-Q, except for Paul, that would leave only consulting expenses as a potential labor expense. I would argue that if an expert is being brought in to figure out the correct chemistry for a successful pour, that expense would fall on the JV responsible for the mining operations. If that's not the case, that's okay, but clarification should be given since that was not really what was presented to investors via the PRs.
Equipment and Assets In my opinion, other than permanent structures, any equipment should be provided by the JV. We know this isn't the case because Mexus raised funds for the new Merrill Crowe. Again, this is okay, but does cloud the issue of what is the JV responsible for and what does Mexus provide. As I stated earlier, we are putting a structure up around the new Merrill Crowe so it seems appropriate there would be money spent on that.
Operations Mexus has some fixed operational expenses, website upkeep, legal, pens paper, etc. But the amount spent last quarter seems to exceed any normal operational expenses. I wouldn't think we are paying for the fuel to run the loaders, but again, there is a lot of cash being spent and no clear reasons why or what.
All of this might be justified. But I've not been presented with a logical plausible rationale.
It might come as a big surprise that this poster is not factually correct.
I've asked about this as well. Nobody has been able to come up with any formal contract or terms of agreement in writing. IR won't provide any details about the "agreement" other than what has been stated in previous PRs.
So far everything seems to signal it was some kind of handshake deal.
There are false starts and stops along the way.
There a plenty of buyers still lined up in the mid to high .02.
People are buying. They are doing some bargain shopping though (i.e. more selling at the buy bid and not much buying at the ask).
Not sure I understand the significance of this, if there is a typo or if I am interpreting it correctly?
Dent said Mexus wasn't providing anymore labor or finances so that would imply Mexus was covering costs and not MarMar.
Odd are some do not feel a need to know anything of Mexus past as too confusing a riddle.
Tried reading the contract as presented rather than fly the maze/"riddle" blindfolded some desire for you.
"May 24, 2016
Mexus enters into joint venture with MarMar Holdings
CARSON CITY, Nevada May 23rd, 2016: Mexus Gold US (OTCQB:MXSG)(“Mexus” or the “Company”) announced today that it has entered into a joint venture agreement with MarMar Holdings of Mexico at its Julio/Santa Elena property. Under the 50/50 joint venture agreement, MarMar will operate the mine and carry all costs. In addition, the company is announcing that the Julio/Santa Elena property will now be known as the Santa Elena mine."
I don't purport myself as anything other than an amateur investor, however, the current trend is not limited to the last couple of days with light trading.
Since December this stock as slowly fallen from the .06 range. The medium-term trend (last 6 months - 1 year) has shown a slow decline from .12-.14 cents down to .03-.04. Longer term, since the December 2016 high of .20 this thing has been in a slow decent.
Let's not pretend the low stock price is due to a couple of frat boys at a BBQ doing some day trading, or a market maker trying to short a stock.
Fundamentally, the company is struggling. It's still possible (I'd even go so far as to say probable) that the company will eventually overcome the challenges and reach production. But until the company can demonstrate it has resolved the production issues preventing it from pouring gold it can sell, the trend will continue downward.
There was supposedly a support base at .12 -.14 that we fell through in the spring of of 2017. Another at .05 -.07 that we fell below at the end of last year (and are currently struggling to maintain. If we fail to keep it around .05 The next support level is .03.
This, of course, assumes the company does not make any announcements of gold produced and sold.
So far today it looks like on person is doing most of the selling. However, the ask has dropped by over 1/2 cent over the last week. There are multiple factors suggesting this stock will be flirting with .03. before the end of the week.
The bigger point that started this whole conversation isn't what's considered late, but a comment inferring people were foolish for wanting/expecting a PR on Monday when anyone with common sense should know the company was posting it's 10-Q on Wednesday on time as it always has.
When in reality, the company has, more often than not, been delayed in filing the 10-Q.
Whether or not the 10-Q will have any information related to what has happened after 12/31/17 is another matter. As I understand it, technically the company doesn't have to provide any information for events after 12/31/17 in the report, but if something substantive has occurred it could be included.
In the unlikely event information about recent gold sales are disclosed in tomorrow's 10-K it might make one wonder how anyone might have been privy to that information ahead of time.
Glad to hear a 10-Q is on the way. I look forward to some good news.
And while I am certainly no defender of the overkill from our negative nellys lately. Its not like our 10-Q has a history of being filed on time.
That was my thought too. I'd take that as a positive. I thought there would be a mild to moderate sell off today.
So is no volume this morning a good or bad sign (For share price this week)?
If anything, it appears to be painting it up. To rwallia's point the trades do appear to be for 5,000 - 10,000 shares.
However at .05, I'm not sure I'm not sure I buy that someone manipulating would buy in 50 or 100 share amounts. That small of an amount would draw too much attention. Someone "smart" enough to paint the tape would know to do it in more normal increments.
To be clear, I'm not saying it is painting the tape, just think this week's trend at closing is a worth watching.
Interesting trend this week. During the day the stock lingers at sub 5, then about an hour prior to close it seems to find it's way back to 5 or slightly above.
Pure uneducated/amateur question, but is it being paranoid to think someone painting is the tape?