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If they implement the cementation process, there really is no pressing need to install an SX/EW. They are both used to extract the remaining copper from the tailings of the floatation mill. A main ingredient in the cementation process is sulfuric acid. A year or 2 ago the cost of sulfuric acid was 10X what it is now. At that time, an SX/EW made more sense because of the costs of the acid. Now that the cost of the acid is reasonable, the cementation process should work just fine for their needs.
FFF
Don't forget that some of the BOD members, including MD, are very large shareholders. So you have to believe that they have some interest in maintaining the values of their shares of stock.
FFF
Sese,
They put 3000 tons of raw ore into the mill each day to get 100 tons of CuCon out the back end. There is .25oz of gold in each ton of CuCon, not each ton of raw ore.
FFF
Nate,
I have no knowledge of any privitazation efforts. But I also wouldn't kid myself that just because they were not considering it a year ago, then they must not be considering it now. CPRK is desperate for money - we just barely avoided a sheriff's sale today and there are reports that employees still aren't caught up on their paychecks. Desperate people do desperate things sometimes. So I would keep an open mind on this. My guess is that current BOD and management would not want to take it private, but that is just my guess. However, if the only LTF offer they get is contingent upon being able to take it private, then who knows what they will decide.
FFF
RDG,
I am sure that any financing company would know that the potential of this stock would be great. And that is why they would want to take it private. Buy the company now for cheap, invest in the company and get it humming, then do an IPO on a higher, more reputable exchange and make a killing. If they took this private, I might just hang onto all or some of my shares and go private with them.
FFF
Cletus,
I am not an expert on going private, but these are my thoughts:
As has been stated, to go private they will have to own the shares, or take you private with them if you still own your shares. If someone wants to take this private, I would guess that they would put out a tender offer to buy peoples shares at a price above the current market prices. And they would probably try and make it attractive enough to get most people to agree to sell their shares. There are also other ways that they can get rid of most shareholders, like do a large R/S so that most shareholders would own less than 1 share, and the company would pay you off for your partial share and you would be out. I think it was posted somewhere on this board a while back that to go private you have to have 300 or less shareholders, so they would have to get rid of a lot of shareholders to get to that point.
My guess is that to take this private might cost them more than $100M and then they would still need more money to fund the improvements and operations of the company.
It is definitely a possibility. And a lot of it probably depends on which LTF deal they can close.
FFF
CDL,
Are you sure that is a Hatch report? There was a report in 2005, but it was not the hatch report. An d in 2006, there was a correction ikssued to the value in the 2005 report.
They have drilled on ly a small portion of land. There are other areas of interest that they have not yet drilled.
Nothing.
Rich posted there were (2) 38' and (2) 20' vert float tanks.
I am pretty sure there used to be only one of each, but it was almost a year ago that I was there.
FFF
Keep in mind that Kennecott is supposedly running in the .5% copper content in their ore. The CPRK Hidden Treasure mine they are currently in is supposed to be around 1.7% copper. And they are stating that the Copper Ranch ore has between 6-16% copper. That is unbelievable. And I sure hope it is true!
FFF
Nice job rich!
Now, we still have challenges to get through, but if you want to start to look at the potential of this operation, read on:
FYI, 3700-4800 tons from Rich would be the amount of ore run through the mill on a daily basis. I believe that those numbers will be met down the road, and that they may even get to the stated mill capacity of 5200 tons way down the road. For the near term, I would probably go more with 3000-3500 tons per day as a good running rate to achieve over the next few months. For the sake of a conservative discussion, let's use 3000 tons of ore per day. IF we run 3000 tons of ore per day, and IF we have 1.7% copper in the ore, and IF the new cells achieve the goal of a 65% extraction rate, and IF we end up with CuCon of 33% copper, then:
3000 tons x 2000 lbs/ton x .017 copper content = 102,000 #'s of Cu. in the ore per day.
102,000 x .65 extraction rate = 66,300 #'s Cu extracted per day.
66,300 / .33 copper in CuCon / 2000#/ton = 100 tons CuCon per day
Daily production revenues (keep in mind these prices are down right now):
66,300 #'s Cu x $3.15/# x .9 after fees = $188,000/day Cu
100 tons x 18 oz Ag x $16.50/oz x .9 after fees = $26,000/day Ag
100 tons x .25oz Au x $1100/oz x .9 after fees = $25,000/day Au
For a daily revenue of $239,000
Annual revenue x 340 days = $81M per year in conservative revenues.
Assuming operational expenses are around $1M per month, and admin and office adds 20% to that, then you end up with around $15M in annual expenses. Take that from revenue and you end up with around $66M/year.
Assuming we get LTF of $120M, for 20 years, at 8% interest (this is a total guess on my part), then the annual cost to pay down the LTF would be $6M. We should have enough carry over losses to avoid paying taxes for a couple years, so we end up with a net annual profit before depreciation of $60M. And this doesn't take into account the cementation process or the magnetite sales.
Again, lets go with worst case and use $60M as our total net profit and 5B as the O/S. That comes to $.012/share profit. If you use a conservative P/E multiplier of 10, then you should see a share price of $.12, and with that kind of profits, maybe even see $.005 per share dividend (I can dream .
If you assume that we will retire and buy back shares to get the O/S to $3.5B, and you add in $20M for cementation and mag sales, then you have an annual profit of $.023 per share. Times P/E of 10 gets you a share price of $.23, and maybe $.01+ in dividends.
And while we still have a long way to go, that could be a starting point for where this could go in the future.
All IMO.
FFF
I don't know why its down. Hopefully rich & terk can shed some light on that.
It was not running yesterday and was not supposed to be running today. I don't know if it was running at all over the last week or if it has been down the whole time.
FFF
Maybe we should all pitch in and get MD a smart phone so he can send texts and emails to the shareholders while he is out. Or a wireless, helmet webcam so we can see what he is up to.
FFF
RS500,
My actual comment was "There is no gag order on them because they got so much good news." As I re-read it, I can see that my point was not clear - I guess I am tired
My point was that there would be no reason to put a gag order on them because they didn't get a whole bunch of new information.
And yes, you can "put a gag order" on them. I have signed a document before stating that I would not share certain information or trade any of the stock on the open market for 3 weeks after receiving certain information about a company I was considering for an investment. It just wasn't actually called a "gag order".
FFF
Richwaters said they were working on some things on the mill and that is why they couldn't go on the upper level. But I don't know what they were working on. I believe Rich and Terk can fill us in on the details. I don't want to steal their thunder here, but I also know how hard it is to wait a day for information when the company has not shared anything with us.
FFF
I do not know why the mill is currently down. Hopefully Richwaters and Terk can shed some light on that today. Hopefully they made it home safe yesterday, as there were blizzard conditions down in the Milford area.
FFF
George Young is the lawyer.
Dave McMullin is on the BOD and he works at the mill / corporate office. I am not certain of his responsibilities.
FFF
CAM is not from Utah. He lives on the east coast. He was in Boston when I talked to him this evening.
FFF
Don't expect much.
I spoke to Rich briefly tonight. He can fill you in on the details. But don't expect much. There is no gag order on them because they got so much good news. And like I said earlier, the mill was down.
FFF
I cancelled my mill tour trip for thur morning. I was supposed to tour the mill with MD on a side trip to utah on my way from san diego to detroit (home). But due to several reasons I chose to pass on the mill tour at this time:
1. MD informed us today that he wouldn't be at the mill Thur. - hopefully he is off working on financing.
2. Dave McMullin will not be there on Thur.
3. The mill is down. It was down for the tour on Wed as well.
4. They are getting a blizzard in southern Utah right now.
5. My flight to SLC was delayed for 4 hours.
So instead of dealing with all that, I will be getting on the red eye in 2 hours.
FFF
J4P,
That was posted on mystockbuddy.com. He also posted again later saying the reason for the cancellation was that safety inspectors were at the mill that morning so they couldn't have visitors.
I know CPRK was expecting MSHA in last week, but maybe MSHA pushed it back to this week due to all the snow last week.
FFF
GOT CPRK? on the front.
User Name on the back.
Rich,
1. What % of the copper are they able to ectract from the ore for various rates of ore input? For example at 1800 tons of ore per day & at 3500 tons per day.
2. How many tons per day of con are they getting now & what is the % copper in the con?
3. Find out if new cells & tanks installed are actually in production. I have heard rumors they may not be ready yet.
FFF
I like the annalogy.
FFF
Sat,
I agree. I am not happy with the performance of MD or the BOD. I am never happy losing money. Our investment is down to $.0035 pps, or a $17M maket cap, on a company that should theoretically be worth billions.
FFF
RDG,
You are assuming that MD shares all info with the BOD. What if he does not share info with them either?
FFF
Panson,
After your talk about being seasick, I wasn't sure if you meant "just show up" or "just throw up".
FFF
Sleep,
It has been reported here that the debt behind the sheriffs sale is about $1.4M. But let's be clear, that is not the only debt that CPRK has right now. There have been posts here that state their debt is more in the $60-70M range. I don't think that is unreasonable debt for a company that has built a new floatation mill and has been running mining and drilling operations over the last couple years without any significant concentrate revenue coming in - yet. If they get the mill up and running at the projected volumes and effeciencies, this debt could be paid off in the next couple years. The key thing here is that they need to get it running at the projected volumes and efficiencies - and this is the dance that is happening here now. Some are betting they will get there and others are betting they won't. I think they will, but they need some changes in how they operate in order to get there.
FFF
Rich,
From my experience of being there a year ago. I would just use the video camera and forget the digital camera. You get so much more information on a video! And for the purpose capturing the trip, you don't need a great still photo. Anything important can be captured on a short video clip.
FFF
Johnny,
What share price does it take to get listed on the NYSE?
Thanks.
FFF
You forgot to sign your post with "Richard the CEO".
I have also confirmed that MD is still the CEO of CPRK. The various rumors of resignation and removal today are all inaccurate.
FFF
If you want to know what things are called, go back and watch my video from Feb. 5, 2009. I believe I name all the processed in the video, but it is hard to remember that far back!
CK,
The ore out of the ball mills goes into the floatation tanks. The longer the ore is in these tanks, the longer the chemicals have to react with and extract the metals. And the more ore you put into the mill, the faster the material runs through these floatation cells. So adding more cells makes sense. The concentrate goes into the huge, tall blue tanks after floatation. These tanks settle out more of the tailings and improve the percentage of the copper in the concentrate.
FFF
Tina,
CPRK is a REAL company. You may not like them, but they are real.
FFF
CK,
My understanding is that we paid around $250K for the SX/EW, but it is currently held up in BK court. I also heard that we had offered around $2.5M for it a year earlier and they rejected the offer at that time. That was before the economy took a dump.
And we would rather not have all the LTF money accounted for in past debts. It would be nice to have some working capital to install new improvements to releive the bottlenecks in the mill and to pay the bills until we are cash flow neutral or positive.
FFF