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Read the article at the following link. If Sarissa was opting to kick the expenses onto the balance sheet instead of flowing them through to the insiders then the article suggests that was done to offset unforeseen income.
Who do you think the flow through shareholders are?
My guess is Scott. Guess he wasn't ripping us off after all.
http://business.financialpost.com/2013/03/07/flow-through-shares-canadas-quirky-tax-innovation/
Do you know what they were telling you? Or are you dissatisfied because you don't understand the response?
Did the lawyers outnumber the shareholders?
The bold numbers equal the unbold numbers to within a reasonable order of magnitude. So you are showing us that the bottom line is Sarissa's cost of business. I don't see anything anomalous in the numbers. Call it exploration costs, or management fees, whatever -- the bottom line is a consistent year over year budget and it's either spent on drilling, or studies, or pursuing financing. Which do you want? The difference between 2009 and 2012 is how the resources were assigned due to changes in the business environment. Maybe 2012 results weren't as consistent, but seems to me that the company is actually closer to the goal line. My opinion -- different than yours -- and starting to get overstated.
I hear you, and I understand where you're coming from. But one of the primary aspects of this investment that I like us that management is reluctant to dilute. That may slow things down, but Scott seems determined to get this thing to a mine with as little burden to the shareholders as possible.
Personally, I'm glad that Scott hasn't spent a lot of cash on consulting work from external geologists to survey existing data from comp deposits to develop a guess about how much more of a good thing Neme contains instead of using that money to sell what is proven to a viable customer. I'll take Scott's approach over that recommendation.
It would be nice to drill a 50m grid system as recommended but that is expensive, and there is enough historical data to make a good case to potential partners to provide financing for expanded explorative drilling without putting the cost on shareholders. Again, I agree with managements approach.
I'm not sure if they paid SGS for metallurgical testing per the quote or not. It was recommended and if they did, great. If not, the PRs state that they are still working on a deal to get the test results from Shandong at no cost to shareholders. That is why I think the Shandong testing is a great deal, and from what I know it's still ongoing. Again, management adding value.
Next recommendation was to pay for environmental impact study. Very necessary before the major investment, but I think that securing the path to the mine should come first. I wouldn't be very happy about funding an impact study at this point. Cart before the horse.
Finally, bench testing by SGS was recommended. I've wondered if the bench flow was part of what was being developed at CRIMM. Don't know. Maybe you do?
Anyway, I guess the bottom line for me is that it doesn't make a lot of sense to spend cash on the recommendations in the 2009 report instead of spending the money on securing a partner that can bring a BFS to shore and enable the financing required to unlock the resource. That is the pot of gold and Scott's taking the shortest route IMO
Nobody said it would be easy.
Do some DD
Same destination, different paths.
Nah. I saw more than two guys in those pictures. Plus there were a lot of trips and hosting. There was progress with assay and metallurgical testing. Yeah, it would be nice to see a management info packet like some of the other juniors have put out but then that would just increase the expenses. I don't see evidence that Scott pocketed three quarters of a million. Although if he payed himself a hundred k or a couple hundred, seems OK as long as the company can bear it and bring a BFS to shore. Long term I don't care.
I think he has changed the plan. Originally he stated that the goal was to find a overseas partner, optimally a Chinese SOE. And that's what he tried in Hong Kong and them Shandong Province. In the latest PR's (that I believe are accurate before you start that song) he stated that when the Shandong Exclusivity expired he started pursuing other partners who had approached. That sounds like a regroup to me. The PR calls the new groups Strong Partners. What that means we'll have to wait and see. But there's hope there and also still some hope that Shandong will eventually get their act together. Anyway, it's enough to offset considerable risk. Even now.
I'm sure it wasn't cheap to collect and ship the samples. Remember that Sarissa also collected its own check samples and did assay testing. All of the expenses directly involved with securing a partner and necessary financing are justified against my back of the envelope estimate of potential reward. Would you spend a million to return a hundred million? I'd guess you would.
Send me a picture of Scott in a Ferrari giving the thumbs up in the driveway of his new beach house and I'll raise an eyebrow. Most of what I've read here this week is biased conjecture based on relatively standard COB expenses.
Not sure why it matters if Scott defers his pay or not. The question we should be asking is whether the burn rate he is maintaining is sufficient to keep the company viable long enough to completely execute the business plan. Scott's plan is well known and his execution has been consistent with stated goals. It hasn't worked out now a couple times and that's bad, but I haven't seen any evidence here or anywhere else that convinces me that Scott has diverted from the plan. I'm invested in the plan. If it fails, that's the risk I bought (and that I continue to buy).
Not sure. The analysis assumes that the ongoing cost of operations is zero and that the company's full capital can be applied to the recommendations from the report. This is obviously a bad assumption. The report that was quoted contains a rate of $950/day for two men. Just a couple of employees working over three months with overhead could come to 70k easily. The cost of running the business and the cost of pursuing financing must be considered before putting the cart before the horse.
Excellent. Thanks for posting.
Soon nobody will need steel. Sell! Sell!
WikiLeaks recently released a governmental list of 300 key foreign infrastructures and resources that are vital to U.S. interests. One item that came up multiple times was Niobium.
Yet Niobium is not commonly known in the investment world. It is an element, a rare metal with anticorrosive properties. The demand and price for Niobium has increased dramatically over the past decade. It has a growing amount of applications, from computer screens and camera lenses to automobiles and railroad tracks. It is a strong metal, highly resistant to heat and wear, which is why gas pipelines must contain niobium. But its primary use is a steel hardener. Much of the imported Niobium goes toward the creation of superalloys for use in the aerospace industry and for military applications such as missiles and jets.
Due to its relevance in aerospace and defense, Niobium is considered a “strategic metal” by the U.S. government, meaning there are few or no substitutes for the metal’s essential use. Furthermore, of all strategic metals, Niobium is regarded as one of the most highly critical. But its supplies are considered potentially at risk. This is because only a few sources throughout the world produce the metal. Almost 90% of the world supply comes from Brazil. Nearly all of that comes from only one mine. Most of the rest comes from the Canadian Niobec Mine, owned by IAMGOLD (NYSE: IAG).
From Post # 127911, 1-3-2013:
SRSR has the rocks.
That's a FACT. Deal with it.
From Post # 127918, 1-3-2013:
As for the rest of your post I am just going to say OK. You win.
Vol.10, No.3A Review of Niobium-Tantalum Separation 255
4. CONCLUSION
The extraction and separation of niobium and tantalum by solvent extraction has proven to be simple, rapid and very efficient.
...
From the solution, oxide hydrates of niobium and tantalum respectively were released and the released oxide hydrates were calcinated giving aproduct containing more than 99% niobium and tantalum, respectively.
The global niobium market rebounded quickly from the slump in consumption in 2009 and by 2011 demand had returned to near peak levels. Recovery slowed in 2012 but a return to long-term growth is certain.
...
There is significant potential for an increase in niobium demand that is well-above the underlying economic trends that will govern total steel production.
Iron ore prices will remain strong into 2014 on sustained demand in China, the largest producer of steel, and as an increase in global supply takes longer than expected, according to Morgan Stanley.
The steady increase in demand for niobium is expected to persist in the near and longer term as the emerging markets continue to grow and applications for higher quality steels are developed.
Today, [niobium] is present in a 10th of all new steel produced globally, for use in cars, oil pipelines and jet engines.
Niobium Beneficiation Equipment
Wet magnetic separator features:
1) Wet drum magnets have high magnetic recovery and discharge.
(2) The feed slurries recover the magnetic.
(3) It is available in single or multiple drum applications.
(4) Recover magnetic solids in as clean as a magnetic concentrate.
(5) Permanent magnet assembly eliminates coil burn-outs
(6) The magnet/pole elements are bolted to a mild steel shaft.
(7) The drum is made from thick stainless steel for long service life.
(8) Wet drum separators are available in different configuration like single drum, double drum and multiple drum. In double drum two separators are arranged back to back with a common feed back.
There are three functions air flow sucking, pulp sucking, and floating of each single cell, so it can form the flotation circuits without any auxiliary equipment, and because of its horizontal allotment, its easy for flow change.
A reasonable circulation of ore pulp can maximally reduce the grit precipitate.
It is easy to adjust for the auto regulation of the ore pulp because tHe impeller has backwards inclined double vanes, and the upside van is for the upward pulp circulation while the downside for the downward circulation.
The technology includes the following:
ore preparation processes (crushing, grinding, classification, desliming)
primary beneficiation using gravity, magnetic separation and flotation
refinement of crude concentrates using magnetic fractionation, electrical separation and flotation by means of selectively acting agents (Flon-2, Flon-8)
chemical enrichment of tantalum-niobium concentrates to remove impurities from it
flotation recovery of apatite from tailings of the gravity separation process.
The technology is capable of producing the following commercial products: tantalum-niobium or niobium concentrate, apatite concentrate, magnetite concentrate, mica concentrate and rare earth products.
The amount of ore that can be processed per annum may range from 50,000 tonnes to 1,000,000 tonnes, which enables the recovery of 10-50 tonnes of tantalum concentrate containing 5-30% of Ta205, or 10-50 thousand tonnes of niobium concentrate containing 30-40% of Nb205, as well as 100-200 thousand tonnes of apatite concentrate.
Thanks for posting this! Not sure where you sourced it from but it's great news if April means April 2013. I was starting to wonder if Shandong Energy / Linyi was going forward with the iron ore project because it seems like it stomps on the toes of Shandong Iron and Steel. Wonder if "industrial park" is a bad translation of mining group. Anyway, it sounds like the project is moving again... Does seem odd though that Shandong Energy is developing a capability to mine steel and iron related ores with Shandong Iron and Steel right next door and with coal as their main product. Also Shandong Iron and Steel has a current partnership agreement with China Minmetals and by extension CRIMM. So maybe they're all in together on it? Confusing.
Kinda makes me wish the professor and the detective were still around.
HA! Touché!
I'd go with the scanner.
Is it possible for the members of a board to collectively remove an admin?
Pretty sure the limit is zero on that.