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Better hope it doesn't finish the day there. That toxic note conversion rate will mean a lot more shares (i.e. dilution) paid to the lenders.
From the most recent 10Q
First,
I'm the person who made that post not Git.
Next, looking at the Ihub graph on the bottom right of the screen that day, it showed 300,000+ shares being exchanged minutes before the bell. Not having immediate access to level 2 data I assumed someone had dumped given the decline in price that day and high volume being traded that day. Also, according to the IHUB graph I believe when that 300,000 transaction occurred the price dropped to below $.02 for a brief moment before finishing back up around $.02 for the day. Another indication that it was a sell and not a buy that triggered the transaction.
Let's say it wasn't a dump and someone was buying. Has it occurred to you that even after 1.5 million shares were "bought up" that share price for the day still dropped?
Nobody selling at this price has made money on the stock (excluding the toxic lenders). That means the people selling are taking a loss. 1.5 million shares is a lot of shares to take a loss on unless you think it’s going to get worse and you're cutting your losses.
Regardless, it's still likely either a toxic lender finishing up their conversion or it's an investor (or 2) getting out at a loss.
Neither one of those scenarios exudes confidence in Mexus from the market.
Looking at the end of day activity I'd say you're right. Someone dumped 300,000 shares right before the bell. Impressively, price still closed at $.02.
With today's volume over 1 million it appears the old note is still converting.
It gets even better....
In researching SIPI I see they are a "refiner" by definition, but they specialize in refining end of life products and scrap material.
From SIPI's website;
Thank you. Yes that helps.
Too bad the tidbit about he 45-day delay for the first shipment is SOP according to Sipi's terms wasn't pointed out until after the fact. While a significant detail in this short-term, I'll conceed that is a minor detail in the larger picture.
I can understand the need for 3rd party analysis if SIPI was going to advance pay on the first shipment, but since it wasn't I'm not sure why it would be necessary. I had actually wondered if Mexus did the assessment just to protect itself and verify amounts before sending to SIPI. Either way I don't dislike that it was done, just would have appreciated the context on why it was done. I also wasn't sure if the company name on the letter head was Ceasar's or if it was a bona fide 3rd party.
In my opinion, Mexus would have been well served to explain the assay analysis on the carbon filters was done by an independent 3rd party lab. That, to me, would be the most positive take-away from this PR. The rest is a big nothing burger and slight dissapointment that payment will be delayed for at least 45 days.
Also, Did anyone notice, the assay analysis of the shipped material was dated July 21st? 10 days after Mexus announced it would be shipping the material out to SIPI within a week.
Not a huge issue, but speaks to the constant inaccuracy of statements being issued by PT.
Any idea why this analysis was done and by whom? Was it by a 3rd party or is this Ceasar's analysis.
Wait...what?!
If there is so much chunck gold, why not use a placer miner? There was one supposedly already in Mexus possession that the legendary Azuka was supposedly using to steal gold?
The story keeps changing folks.... Should we ball mill, placer mine, Merrill Crowe, VAT (whatever the hell that is), or electrowinm or a combination of all the above?
The confusion 'round here is from the mighty PT's ever changing story and mining methods. Not the basement dweellers.
If the company's PR's about assay values is accurate and the statement about a 90% advance payment from SIPI based on assayed amounts is true, then why would the notes convert, especiallly those that come due after August?
Did the filters make it to SIPI yet? Has the 90% advanced payment from SIPI been received? If not, is there any ETA on when either of these events will occur? The PRs announcing the SIPI agreement and shipment of filters was given over a month ago.
Here are the facts as given by Mexus;
Mexus will receive 97% spot price for Au sent to SIPI.
SIPI will make an advance payment of 90% based on assays
Mexus has claimed up to 4000grams of Au in the filters was shipped.
4000 grams = 128 Troy oz.
Gold spot price is current'y 1813.00 oz (we'll use $1,800 spot price to be conservative)
90% of spot price is $1,620
$1,620 x 100 oz Au (I'm going to low ball the number of oz becasue the PR says up to 4000 grams) = $162,000 advance payment. (and that doesn't include payment for silver amounts)
Anything above $162,000 gives credibility to Mexus and demonstrates they are getting their crap together. Anything less than a $162,000 from SIPI means Mexus' PRs were significantly inaccurate.
I honesly don't know where this will eventually land. If someone held a gun to my head and forced me to make a prediction, my wild arse guess is it will come out Mexus was only paid a smaller amount, I'll throw a dart and say $30,000 advance payment. Half the folks around here will then positively spin that as progress, and the other half will say Mexus lied.
That's my opinion, anyway.
It is interesting that the rumor of imminent and significant gold sales isn't creating some kind of upward pressure on share price.
Not saying the gold sales rumor is or is not accurate, just observing that many folks seem to be in wait and see mode before making a purchase.
How frequently can the comapny rinse and repeat? If it takes 4+ weeks to think about maybe shipping the filters... eventually, then it will take a 3 month supply of filters to maintain continuity of process. How many filters does MXSG own and how many are needed to operate the electrowining system?
I assume we have at least 1 set of replacement filters, but again if it takes 2 months to ship, refine and return filters then we'll need at least 3 sets of filters.
The other thing to keep in mind... The refining process is THE issue Mexus has been unable to solve. How many times have we heard the gold has been extracted, but then when it came time to smelt, the results of actual refinable gold has been dismal? Perhaps using a 3rd party to refine will resolve this issue. Time will tell, but there still seems to be a lot more that can go wrong than can go right.
Why does it matter what property it was referring too. The point is Mexus has mentioned partnerships and JV's mutlitple times over the last 2-3 years and nothing has materialized.
Is it possible something could come from the neighboring mine? Sure, but it is hardly a done deal that folks should be banking on and using as a catalyst to buy up stock.
30+ days for the carbon to ship? Those burro's are making good time. I'm a little concerned they might get slowed down in traffic on I-55 just south of Chicago. Traffic always seems to get backed up around there. I'd guesstimate they'll have to allow for another week or so.
You make a fair point Dino. Equity does get treated differently. I'm also not up to speed on all the CARES Act changes.
There may be ways for Mexus to offset some of thier previous loses. But it gets murky on how much. Depends on Corp Type, Mexican and/or US filings etc.
Nah.... This one can be accomplished with some simple due dilligence.
Revenue - Expenses = Profits. Profits are taxed.
If Mexus has debt to use to reduce it's tax liability taxes it will show up as an expense to offset the revenue they make selling gold. Profits (and taxes on those profits) will be affected accordingly.
The $30 million "debt" has mostly been covered by issuing shares (dilution). Until those shares are retired (aka buy back) Mexus can't expense that debt.
Dino - You are to be commended for going above and beyond the agreement. Bravo, Sir.
Couple of notable items from the 10-K that stuck out to me;
1. $151,360 in gold sales - a welcomed sight
2. 15% of the share float was issued within the last 90 days to "satisfy subscription agreements". Not sure what Subscription Agreements all include, perhaps (hopefully) most of it is payment to PT. If not, there have been a lot of shares issued that haven't cleared the market.
3. Mexus has $1,277,775 of notes payable and notes payable – related party in default. There don't appear to be any default provisions stated in these notes so I assume there is no penalty, but the company is default none the less.
Basically, the debt train and share dilution train is picking up speed again. Mexus has to start selling about $40,000 + of gold per month soon, or the toxic debt will force them to do another reverse split.
Nice job completely distorting what was said.
Straw Man Fallacy anyone?
I understand what you're saying about the weight of the filters etc. Where my knowledge falls short is once you pull the contents out of the filter.
For example, let's say the assays came back 100 grams of gold and 200 grams of silver, the refiner is paying 90% spot price of those amounts.
However, what gets stripped out of the carbon filters isn't at a purity level or form that can be sold in the market. It has to be refined into the .999 purity.
In order to get the initial 100 grams gold and 200 grams silver to .999 purity, there would be a loss of weight (theoretically the loss of the impurities in the assayed gold/silver).
So instead of having 100 grams of gold and 200 grams of silver, the refiner is left with (wild guess here) 80 grams of .999 silver and 160 grams of .999 silver.
It is my presumption, the refiner would then true up the 97%/95% based on that final weight.
Additionally, the refiner is working off of a 3% margin for gold and 5% margin for silver. I don't know what the typical charge/margin is for gold/silver refinement, but those margins seem low to me. Fpr perspective, coin shops charge a higher mark-up than that and all they do is resell a finished product.