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Wanderport Nov 26 Update sounds to me carefully crafted to support a no-fault, best-effort defense when there is a rinse to repeat with the shell.
At least someone is making Andrew do something (post deletes) to earn that monthly contract
Have you looked at the pending sale of Grew to Redtail and the bridge financing to Northern Tiger with subsequent merger of Northern Tiger and Redtail, with GPRXF being contolling owner ?
Formation Metals Corporate Update & Review
11/21/2013
http://www.4-traders.com/FORMATION-METALS-INC-1409977/news/Formation-Metals-Inc--Formation-Metals-Corporate-Update--Review-17484951/
Vancouver, B.C. November 21, 2013, - Formation Metals Inc. (FCO-TSX) ("Formation" or the "Company") is providing today a corporate update and review for its stakeholders. The update includes a summary of the activities on the Company's 100% owned Idaho Cobalt Project ("ICP") and its current status, additional information regarding the Sunshine Precious Metals Refinery (the "Refinery") formerly owned by Formation and a summary of the austerity measures undertaken by management and its Board of Directors.
Significant progress on pre-development work on the ICP has been made, including obtaining all necessary environmental permits. A total of $16.5 million has been spent on the procurement of long lead time items, including but not limited to such items as the crusher, ball mill, and flotation cells that have been secured in a Company owned warehouse and a leased staging area. Stage I construction commenced in July of 2010, and consisted primarily of 125 acres of timber clearing for the tailings and waste rock storage facility, the soil stockpile, site roads, and mill and concentrator pads. Stage II construction commenced in the summer of 2011, after successfully concluding an $80.0 million financing in March of that year and continued into 2012. Stage II construction consisted of the mobilization of heavy equipment for the transportation route upgrades and the establishment of a crusher facility to produce aggregate required for these upgrades, the installation and upgrade of required powerlines, portal bench geotechnical drilling and major earthworks were completed. Earthworks consisted of pad construction for the crusher, concentrator, water treatment plant, maintenance shop and storage area, aerial tram unloading terminal, tailings and waste rock storage facility, soil stockpile, water management ponds, portal bench and the establishment of a ground water capture system. Additionally, a new access and haul road was constructed that provides further access between the mine portal and mill apart from the proposed tram line and eliminates two miles of existing haul road dedicated to mine traffic between the portal bench and mill. This new road is expected to have a positive impact on the cost per ton to process the ICP ore. An Updated Google Earth Image of the ICP from September of 2013 and posted on the Company's website under Construction Gallery provides an overview of the extent of the earthworks completed to date.
Stage III construction would have consisted of the initiation of underground development and the assembly of the crushing and milling facilities and ancillary buildings and will only commence upon the successful conclusion of final mine financing.
Subsequent to the Company's news release dated May 2, 2013 announcing the decision to defer underground development of the ICP, activities have focused on maintaining the project in good standing with the various permitting agencies to ensure the retention of all development and mining permits. Seasonal closeout included seeding fertilizing and mulching of all areas with exposed soil and re-surfacing of access roads to reduce sedimentation. Ongoing care and maintenance operations include sampling and monitoring of water wells, preparing updates for various permits and conducting site reviews with the associated agencies. The purpose of these activities is to ensure that construction of the project can recommence in a timely and unobstructed manner once market conditions improve and mine financing has been secured.
The latest available financial statements for the second fiscal quarter ended August 31, 2013, prior to the conclusion of the sale of the Refinery, demonstrate a cash position of $7.9 million and a convertible debenture debt of $5.7 million. The statements also show a loss of $3.5 million for the six month period ended August 31, 2013 which includes a $0.8 million loss from the Refinery operations. During the period, the Company expensed $2.7 million of deferred financing cost related to bonds redeemed on May 9, 2013, and write down of inventory to fair market value and impairment of mineral property of $0.8 million. For the previous fiscal year ended February 28, 2013 the refinery operations reported a loss of $1.6 million with an additional write down of inventory of $0.6 million. The Refinery was a successful business venture overall, although due to industry changes in the silver refining business it reported recent losses which were not sustainable and the Board of Directors made the decision to monetize the Refinery, a non-core asset, for US$12.0 million and paid off the $5.7 million debenture in full (see Company News Release dated October 11, 2013). The Company initially purchased the Refinery in 2002 for US$1.3 million, and an associated tailings pond was subsequently sold to a nearby mining operation for US$4.6 million. Additionally, over the course of the Refinery's commercial production under Formation's management, it realized an overall profit of almost $3.0 million apart from the sale of the tailings pond. As part of the sale, Formation retained a 16 acre package of industrially zoned land suitable for future placement of the Cobalt Production Facility to process ICP concentrates. The Company is also looking at other sites that could provide substantial operational cost savings.
Recent activities related to the Refinery focused on completing post-sale closing obligations and the processing and preparation for shipment to other refineries of various precious and other metals bearing materials owned by Formation that were not included in the sale of the Refinery, the removal of certain equipment and materials not included in the sale, and the closing out of records and equipment from the administrative offices. Two staff members are expected to remain to assist in the post-sale closing shipment of various metalliferous materials. The administrative office is scheduled to close on November 30, 2013.
Austerity measures have also been implemented to conserve cash. Austerity measures put in place prior to the sale of the Refinery include downsizing the Company's head office both in office size and staff, 6 positions were eliminated at the Salmon, Idaho operations office due to the deferral of ICP development, and 6 hourly employee positions were eliminated at the Refinery. As a result of the sale of the Refinery, an additional 24 hourly and 6 salaried positions were eliminated. In addition, many outsourced contracts were terminated or renegotiated to further reduce expenditures. The sale of the Refinery and deferred development of the ICP has reduced risk exposures that resulted in significantly lower insurance premiums. Management continues to optimize its resources and seek additional opportunities to conserve cash in the future.
The Company is now debt free with a strong cash position and greatly reduced monthly expenditures. Management is pursuing additional opportunities with potential for near term cash flow. These efforts ensure the Company's strong financial position to withstand the poor financial market conditions and take advantage of undervalued opportunities that would enhance shareholder value.
About Formation
Formation is a well-established mineral exploration and development company that owns 100% of a fully permitted primary cobalt deposit located in Idaho which has been prepared for the commencement of underground development, pending final mine financing. Formation has additional interests in base, precious metal and uranium projects in Canada, the United States and Mexico. Formation is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. The Company trades on the Toronto Stock Exchange under the symbol FCO.
Formation Metals Inc.
"Mari-Ann Green"
Mari-Ann Green
CEO
For further information please contact:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications
Formation Metals Inc., 1810 -- 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: 604-682-6229 - Email: inform@formationmetals.com -- Web: www.formationmetals.com
come back in 2014, probably toward the thaw time
slight difference between "why would anyone buy EXS" speaking of the company as a whole (myself, InXS) and speaking of shares as shareholder (seemingly TT comment).
Of course my post was cynically made, observing the state of things relative to the supposed deep and rich pot of gold CD wants to chase further after the next raise of capital.
hey, at $4.1 CA million market cap surely EXS is going to get bought up like chocolate icing on sale at the grocery, after all its only around $4 per ounce gold in the ground of TPW with all the other property obligations tacked on for extra measure.
20 dollar bill for a 50% takedown
With me also, particularly if BRD continues paying off that debt (the service on which is not included in AISC)
Maybe. The net loss mostly seems hidden in note 5 of the financials, which is not explained much at all with details the "Impairment of assets held for sale" item. Not sure, but it appears 0.7 million of this relates to the revamp of the agreement on the sale of the Huizopa property (note 16)
Anyway, these are one time things and/or adjustments to market which one might hope will some day reverse.
It is also worth, imo, keeping in mind the the all-in sustaining cost number is calculated using ounces sold, not produced, and in Q3 there was 1,170 more ounces sold than produced. If one adjusted that $992 cost to ounces produced one get 1,035. Still very respectable imo showing room for the increased expense announced for drilling to explore the new deep high-grade zone at Black Fox.
early market liked this one
I note the 4 drills completed and pending for future news
probably not the size (in thousands) but the how that is reconciled to the other reported cash flows for the Q
rollback/consolidation time and rename
price action subsequent will be of interest
Agree with you on the project and apparent value, whether one uses either highly reputable firm's methodology for estimation.
I do wonder about the cost of all this headwind, and the issue does not seem to be which methodology is correct but whether material information received from one of them was withheld from investors.
maybe the herd of laughing jackel paid posters is going to show up before 2014
wondering how much all the legal defense fees will be
long, long time since that sort of volume
I assume this is part of "ex-work", meaning once components are delivered to agent to prepare for shipping at one time, then the 2-4 week period will start.
Come back in early 2014 for updates on bad weather north of the border.
No betrayal, and you are likely right. I found it to be no real surprise we had praise of Andrew and WDRP posted all night long the day before the last hearing (and have seen nothing of that board member since).
If it is not the next hearing that causes PRs that appear like WDRP is working on moving this along then it will be the winter season with its wealth of weather related excuses that encourages them to set out some appearance of progress.
Does anyone else remember how we were told that superstorm Sandy destroyed the video we were told had been made ? Seesh
I may have read it wrong but it didn't seem timelimited. Rather it depended on exchange approval of the share issuance followed by a decision of the board which would put it in motion. I assume either would be a material event requiring public disclosure. But what do I know?
Why would I want to do that? I prefer to hear from sources in which I feel there is cause to have confidence.
The offering would have to be announced, which I don't find.
Whatever happened about the rights offering? Anyone hear?
Good question as to what the obligations each way are.
When I read the revised contract, which may be the current form or not, I was left as unsure of the boundaries as when I read the original.
In either there seems so much not said that it is like spounge rubber one can twist different directions.
As for the 500 million shares isn't that pretty clear, it was in exchange for the rights to market product(s) based on Robert's intellectual property for microwave water heaters and for his agreeing to act as a technical advisor.
Such was my take anyway.
but is it Robert's fault ? I mean contractually, is it his responsibility ? He is just the licensor and technical advisor, right ? Isn't it WDRP's responsibility for making something out of the licensed rights, with technical advise from Robert ?
Just why Robert has been (attempting to ?) carry the ball and do it all is something of a contractual curiosity as far as I have figured. But hey, WDRP has a contracted (but unpaid?) PR person running the whole show so what is one to expect ?
Did you notice no one has been flushing the questioning posts on FB for some time ?
hey, the $100 still buys a decent dinner
Agree - WDRP public face is still full of misrepresentation, if not out and out lies.
I thought Robert received 500 million shares for granting WDRP the exclusive rights to distribute products based on the patented (sic ! never patented) technology.
my bad, you are correct that the full milled sample result is showing recovery. not sure how I was thinking otherwise.
so that raises the possibility that the sample is not waste, depending on what is the content after taking into account the loss in recovery
so you are predicting a 75% haircut from here ?
A couple points . . . As I understand it the gold recovery from the part of the bulk sample processed is still unknown. The content (not the part recoverable) was almost twice as high based on the whole milled sample compared to the limited tower samples of Strathcoma, that is true. The gold grade of the whole milled sample still came in below the cutoff used by Snowden in their feasibility study, meaning it is waste, without economic gold at 1350/oz.
I agree that the risk/reward looks enticing here at the moment, but I also feel that there will be some time before the dust has settled, before the price of gold pulls the 3 year average to improve the feasibility economics, before the lawyering and its potential costs become a known, before the pissing game between the engineering firms settles, before big money is ready to weigh in on the share price, etc., yet the project in the meantime will need cash to continue to flow in to maintain its past burn rate.
sort of ambiguous comment there
Of course "proof" exists only when the judicial system so decides. However, I found the comments released Tuesday by the CEO of Strathcona, supposedly made in email of the same day, to be very pointed and directly accusatory of wrong-doing.
IMO, right or wrong, the lawyering is going to be a weight on PVG for some some to come scaring some major money away until the dust is settled and the air cleared.
IMO this takedown is not about BQ, integrity, or even the amount of gold present in the project. Rather it is about the economics of the project if gold cannot hold at/above 1350 as some of the big houses have been advising.
"milling of 2,167 tonnes produced just 281 ounces"
(281 * 31.1) / 2167 = 4.03 g/t
"cut-off grade of $180 per tonne of ore was used to define the mineral reserves for the Brucejack project feasibility study"
(180/1350) * 31.1 = 4.15 g/t
Probably omitted as AUN is passing through a couple high cost quarters given the mine-plan staging work in Mexico and the cap-ex etc. in Texas . . .
All the same, imo, if AUN really wants to be seen as breaking into mid-tier quality it needs to report items like recovery rates, avg head grades, and at least cash cost per ton as we are used to seeing from other companies.
BRD catching some love this morning (finally)
I take this a reaction to the high grade assay news released end of last week combined with the general trend for precious metals stocks this morning.
When the full financials come out for Q3 if we have an all-in cash cost at 1300 gold or below BRD could zoom (assuming gold holds to the upside)
The absence of all production costing information is a concern to me.
http://www.aurcana.com/i/pdf/2013-10-21_NR.pdf