No question about it...DILUTION is coming and will devalue the shares of the common shareholder..........

WEM has an abundance of both Gold and Silver, we assume based on historical records, but the DILUTION shareholders will suffer in order to drill it will be a double digit bogey for SFMI shareholders.

Mill is up and and producing at about a 20% recovery rate and losing money every day it's been running, about two years. Metallurgical lab is rumoured to be completed someday.

Cyanide leaching system permit from the feds is HOPED to be granted someday.

Its a no brainer.... long term shareholders have been diluted into oblivion and have suffered MAJOR LOSSES.

SFMI reality check...a picture clouds the truth

At first glance this mill complex gives the impression of a sophisticated, precious metals, money making venture. However, some basic DD reveals that the mill ran for about two years at a recovery rate of about 20%, just abysmal. Needless to say the mill ran at a loss and to make ends meet long term shareholders were DILUTED to pay for the losing operation.

The next project is drilling. I wonder how that will go? I fully expect more DILUTION.....

EXACTLY WRONG IW

For the insiders to benefit from all of the dilution, they WILL NEED TO SEE THE STOCK PRICE RISE SUBSTANTIALLY.

This is incorrect. The common shareholder needs the stock to rise substantially in order to break even from the MASSIVE DEVALUTION OF THEIR SHARES DUE TO THE OBSCENE AMOUNT OF DILUTION. In 5 years dilution has gone from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership. Since the insiders had their share positions topped up they are not at an ownership loss, like their common shareholders. It's the common shareholder who needs the share price to move by leaps and bounds in order for them to come out okay. The insiders haven't lost anything........


Yes substantially, do you think Paul Parliament is buying at current levels so he can realize a mere one or two cent gain?

This transaction will be more clear once the finacials are out but one thing is for sure, in order for him to keep up with the loss of value due to MASSIVE DILUTION he has to buy on the open market because they are not giving him free shares, at least none that we can see yet.

IT COULDN'T BE MORE CLEARER. The Quillams and BOD are all expecting significant returns.

They have been expecting all kinds of positive outcomes over the years. How about the failed Melba Mill, or the 20% recovery on their current mill, or running the mill ata loss for several years, or the half finished projects, etc? I would say that they are unsure of the future and have issued themselves shares so they can withstand more failures.

Who knows in the end if their expectations will come true, but I DO LIKE THE FACT THAT MY GOALS ARE THE SAME AS THEIRS.

Your goals are not the same as theirs. I would say that their goal is to retain their original company ownership, regardless of their performance, so IF the share price goes up they still benefit in the largest possible way. Further, since they still own a MASSIVE amount of shares the price does not have to move much in order for them to do extremely well. I would say that your goal is to hope the share price improves before you get DILUTED even more since you cannot just get free shares. Further, I believe you are just HOPING something good happens because you're down a long way and will be down even further since the company will probably have to do a MAJOR DILUTION to fund the drill program.

THE QUILLAMS AND THE BOD WILL NOT REALIZE ANY BENEFIT UNLESS THE SHARE PRICE GOES HIGHER.

Again, the key here is that since they still have their original percentage, or more, of the ownership the price doesn't need to move so much in order for them to do well. It's the common shareholder that needs a MASSIVE move in order to do well.

Higher baby ..higher baby! I love that song!!!

Too bad there wasn't a song called DILUTED BABY, DILUTED BABY!!!

GARBAGE - NOTHING BUT TRASH.....

You make A HUGE MISTAKE IN YOUR ASSUMPTION. You assume that what is good for the insiders is also good for the common shareholders. This is the farthest thing from the truth. Awarding shares to insiders at the expense of the common shareholder is not what one expects from a BOD that is in place to PROTECT the interests of ALL shareholders, not just a select few.

There is no question that what this group has done is very good for themselves. The point is that when they are compensated with tens of millions of shares that the common shareholder loses because the dilution removes the value from their shares. In 5 years dilution has gone from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership. In order for the common shareholder to recoup that loss they have to buy more, a lot more to keep up with the rate of dilution loss. The insiders simply award themselves shares and their loss is back to par.

These are Real Facts. Not Long-Winded Tirades

1. The Melba Mill was a failure.

2. The new Mill is a failure given the about 20% recovery rate.

3. the new Mill Ran for two years, or so, at a loss.

4. Eike Batista was just more ridculous rumor.

5. In 5 years the share price has gone down 84%, from 15 to 2.5 cents.

6. Dilution over 5 years has gone from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership.

7. The TV shows created a lot of new shares but did not improve the shareprice.

8. There is a lot of family members on the board of directors and on the payroll and none of them have formal training in mining.

Hoping and Dreaming Has Equated to Lost Value

Those posting hopes and dreams on a daily basis are ignoring the facts. Here's a few....

1. I sure hoped the Melba Mill would be a winner...
Nope, what a waste of time and money. A complete bust.

2. I sure hoped the new Mill would produce at a profit...
Nope, about 20% recovery rate. Ran for two years, or so, at a loss.

3. I sure hoped Eike Batista would have invested....
Nope, just more ridculous rumor.

4. I sure hoped the Chinese would have invested....
Nope, just more hoping and dreaming.

5. I sure hoped that the share price would go up.....
Nope, in 5 years the share price has gone down 84%, from 15 to 2.5 cents.

6. I sure hoped my shares would have retained their value....
Nope, dilution over 5 years has gone from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership.

7. I sure hoped those TV shows would have created enough interest to get the share price up......
Nope, it didn't, but it did create more shares......

Stick to the facts and your investments will do better. BIG hopes and dreams don't bring results.

One should stick to why the shares are so devalued and the share price has gone backwards in a rising gold and silver market? Who is really benefitting here? Has this been a good investment?

Ignoring Dilution = Ignoring Your Losses

Facts:

1. In 5 years shares have gone from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership.

2. SFMI created 270,542,401 this year alone, which devalued existing shares 43%.

3. SFMI has managed to go from 15 cents to 2.5 cents. This is an 83% loss in share price.

4. Gold has gone from roughly $800 dollars to $1,650 in the same timeframe as SFMI has accomplished points 1, 2 and 3.

5. The rate of Dilution is accelerating.

These are the facts and sugar coating dilution will not bring back the lost value that insiders are able to replenish.

SFMI Shareholders. Oh Diluted Ones........

In order for Silver Falcon to achieve its end goal, it NEEDS TO ISSUE SHARES in order to be able to raise enough funds to operate.

First, shares being created are not all going to fund operations. Tens of millions of shares have been given to insiders. I believe this is to offset the MAJOR loss in value shareholders suffered as a consequence of SFMI FAILING to make their second mill profitable. Had the mill become profitable dilution could have been kept to a minimum. The reality is that SFMI created 270,542,401 this year alone, which devalued existing shares 43%. Second, one expects that shares that are created to fund operations will be kept to a minimum to preserve value? Nope, in 5 years shares have gone from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership. This is not an investment that warrants a positive review, especially when more dilution is VERY LIKELY as to move the next batch of projects forward the money is going to have to come from somewhere? For long term investors it's a fricken shame that not one project has successfully created a profitable financial statement. So, more shares will likely be created and what will be the result? Past performance is the BEST indicator of future performance, which I believe will be more DILUTION, less value for your shares, and another project that doesn't create a profit.

They MAY OR MAY NOT need to dilute for drilling, we shall see the details shortly on that.

Here's what I think. ... I think the DILUTION will be HUGE and that long term investors will take another HUGE hit on their share ownership and that if the project goes south that the insiders will just issue themselves shares to make up the loss in value.

Just don't be misled by anyone saying dilution is detrimental for this company.

I say just look at the facts and don't listen to those HOPING this time will be different. Here's the facts.... SFMI's outstanding shares have grown from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership. In five years SFMI has managed to go from 15 cents to 2.5 cents. This is an 83% loss in share price.

In fact if they didn't issue any shares that would be an issue since they wouldn't be able to move forward. A company without any money needs to raise funds somehow ..go figure!

Ah yes, but in 5 years SFMI has created 580,436,724 new shares, SFMI has a share price that has gone from 15 cents to 2.5 cents, and they are now moving on to yet another project that may or may not prove fruitful? There is a problem here in that new shares are created like candy, which DESTROYS share holder value but insiders just get free shares to make up the difference and the projects have not been profitable. I think SFMI needs new management.

Everyone just needs to weigh the potential of stock price appreciation along with gold price increase to determine if there is enough reward to buy and hold shares in this company.

Here's another fact you are ignoring. In 5 years SFMI has diluted their shareholderss 94% and the share price has lost 84% going from 15 cents to 2.5. However, at the same time the price of gold has gone from roughly $800 dollars to $1,650. So, while gold has more than doubled in price SFMI has taken MASSIVE losses, which means that even in a rising gold market SFMI is losing..... I believe they are going backwards for a reason......

To me it's very clear that at .025 cents there is no doubt the potential appreciation outweighs the risk.

To me is't very clear that the FACTS are telling a different story. Past performance has shown us that shares bought today are worth less tomorrow. That is the bottom line.

DILUTION DESTROYS SHAREHOLDER VALUE

Too bad the common shareholder couldn't just award themselves tens of millions of shares to make up for the loss of ownership that DILUTION creates, like SFMI insiders can, and do....

SFMI Shareholders

I can assure you all that everyone's investment is safely being diluted and outstanding shares will gradually go up as we have been witnessing in the past 5 years, leading us to the next of a string of projects that have not produced any bankable value, this one the long endured drilling program of the Sinker Tunnel. There should be no panic, only anticipation and excitement that 2013 is going to bring more dilution and be a great year for insiders that can award themselves shares to make up for all the loss in value that massive dilution brings.

Happy Holidays!

Rumors vs Facts

SFMI is always full of rumors, too bad they never come true and when you review the facts the real picture comes to light. Here's a few.....

1. Eike Batista is going to invest in SFMI....
- Nope, but shareholders were DILUTED from 35,072,494 to a WHOPPING 615,509,218 in 5 years, a 94% loss in ownership

2. The Melba Mill will process old ore dumps....
- Nope, had to move the mill (how much did that cost in dilution?)

3. AS and the advisory board is going to invest in SFMI
- HA! But shareholders suffered a 43% loss of ownership in 2012 due to DILUTION of an additional 270,542,401 shares

4. The second mill will get those precious metals!
- Nope, 20% recovery and the mill ran at a loss for several years

5. Shareholders are going to experience MASSIVE share price increases
- Nope, but insiders were awarded tens of millions of shares

Garbage! Pure and Simple.

Wait! A very junior mining company issuing shares to finance their operation.

Tens of Millions of shares have gone straight into the pockets of insiders. Tens of millions more have gone to funding projects that have been abysmal failures, like a mill that has been running at about a 20% recovery rate. That kind of performance does not warrant insiders getting awarded massive amounts of shares while long time investors are diluted into oblivion. In my opinion they should have been fired. We're not just talking chump change here. Going from 35,072,494 to a WHOPPING 615,509,218 shares destroys your value. That is a 94% loss in company ownership

How can that be?

Very easy, they just print up the shares and give it to themselves.

Why don't they just plant a few money trees around the mill and then just harvest what they need to run their business?

They don't need to. Whenever they want they just award themselves shares and if you did a little DD you would realize that when they do the value of your shares go down. Anyone that has been an investor from the start has seen their shares lose 94% of their value.

C'mon people, dilution is to be expected ...how else are they going to finance their plan? Bud - can you answer that realistically?

Dilution is supposed to be controlled and when diluting the share base proper plans need to be in place so that the loss in value is offset by projects that create profits and REAL value. To date all we have is a string of unfinished or unprofitable projects managed by a BOD that largely has no training in mining. Investors don't expect their management team to award themselves obscene amounts of shares for questionable performance. Further, have a look at the trend..... The rate of dilution is accelerating. This year alone the amount of new shares went up about 40%. That is an WHOPPING loss in value over just one year ago. To make matters worse is that the share price is at a pathetic 2 cents. With hundreds of millions of shares out and much more to come I am expecting the share price to go down even more. I also believe that there will be a roll-back and investors will take another MAJOR blow. I'm disgusted with what is happening and I will continue to make people aware of the reality.

The bet here is that the potential profits/opportunity will outweigh the dilution.

These are supposed to be investments, not bets. That's one of the biggest problems with this company. It appears their business model is based on bets, not science. For instance, no one in their right mind would run a mill for two years hoping they would get good recovery rates. A professional team would have done some research to determine what the recovery rates would be. Instead, SFMI moves ahead without proper due diligence and runs the mill at a loss for years. This fiasco caused investors HUGE dilution and insiders get awarded tens of millions of shares to make up for their sub-standard efforts. How about all the rest of the infrastructure? How much did that all cost? What good is it doing now? Whatever happened with the Melba Mill? Just another bet?

But make no mistake about it, there will be more dilution.

Yup, no mistake there. There will be MASSIVE DILUTION to fund even more projects. The question is, will any of them amount to anything? No matter because if they don't they can just just award themselves shares to make up for the loss of value. Meanwhile, long term investors lose again and again.....

I am betting that the potential is greater than the expected dilution = higher share price.

You should be playing the games at Vegas but for some people this is a real investment and it is NOT doing well. People need to be aware that there is no consequence for MAJOR mistakes made on this management team. It's only the shareholders who lose by way of BIG TIME DILUTION.

Ignoring Dilution = Accepting Lower and Lower Value

Those that are ignoring the MASSIVED DILUTION in SFMI are simply accepting lower and lower value for their shares. One really has to question the sanity of those accepting less and less for your shares and stating publicly that it's okay? Perhaps these people are paid to make the case that MASSIVELY DILUTING the shareholders is okay and giving insiders tens of millions of shares is okay, too?

It is not rational in any sense to readily accept that going from 35,072,494 to a WHOPPING 615,509,218 shares in 5 years is okay and that the 94% loss in company ownership common shareholders have suffered is nothing to worry about. That is a serious loss in value. How much more DILUTION is already created but not yet reported? Sad to see long term shareholders lose just about everything while others do not.

Down 83% over 5 years with lots of vague news, lots of hype and pumping and 580,000,000 new shares of dilution. Just imagine your shrivelling share value when there is BONANZA grade DILUTION news and word and hype gets out to Wall Street? What will happen with hundreds of millions of new cheap shares created by accelerating dilution done at about 2 cents? Stick around and keep losing value as share dilution increases.

Ten million shares of DILUTION per month will kill all reasonable value shareholders have invested in SFMI.

Since inception, outstanding shares in SFMI have increased roughly 580 million. They started with about 35 million and now have about 615 million, not counting the MASSIVE DILUTION I believe is being created as we speak. If you divide the 580 million by 60 months you get roughly 9.6 million shares of DILUTION per month. Further, if you look at the rate of DILUTION it is increasing. At the end of the day it's easy to deduce that a share bought today is worth less tomorrow. Not good for shareholders but it's okay if you can issue yourself tens of millions of shares to make up the loss of value.

A patient grasshopper in SFMI is a grashopper being munched in the jaws of a predator. Over 5 years shareholders have lost some 94% of their company ownership and since the share price has gone down from 15 cents to 2 cents that same investor has lost about 83% of their share value.

The share price is at two cents because it deserves to be. Shareholders have been subjected to a constant theme of devaluing shares and insiders have been compensated to make up the difference.

Dilution and declining share price Likely to Continue...

I think shareholders can look forward to more dilution as more projects move forward that do not generate a profit.

Dilution is still in the cards..

With no cash in the bank and SFMI running a mill that loses money every month shareholders can count on more dilution, that will utlimately devalue their already squashed shares.

Just give PQ tens of millions of shares

In the process the shareholders get diluted into oblivion.

Bingo! More DILUTION Coming......

Dilution Destroys Shareholder Value.

Too bad the common shareholder can't just give themselves shares. The current share price is a result of dilution and with no money in the bank it's more dilution............... I'm expecting another WHOPPER of a DILUTION announcement.

Right now our share price is down but there is a lot of buying going on for some reason,

It takes two to make a trade and if there was a lot of buying going on the share price would be a lot higher. This is classic share dumping.

I don't know why except there are some buyers out there who have a lot of confidence in SFMI

There is no confidence. If there was the shares would be selling for a premium, and they are selling at garbage dump prices.

and there are sellers who need the money.

People that are dumping millions of shares at two cents have no confidence in the company. People who are buying are playing the casino.

I'm thinking the shares are coming from our company to fund our ongoing projects to keep dilution to a minimum.

Garbage.... Shares have grown from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership. This MASSIVE DILUTION does not count any new shares, and I'll bet the next round of DILUTION is going to be HUGE.

When we use shares to pay for contractors and supplies we have to discount their value to get anyone to accept at least that is my take on what I have seen in the past.

Giving away shares at a discount is another way that existing shareholders lose value. Shares bought today are worth less tomorrow.... What a pitiful investment, unless you can award yourself tens of millions of new shares to make up the difference.

The buyers here could be some of our known entities or could be anyone who has done their DD and come up with the same conclusions we did when we invested.

In other words, you don't have a clue who is buying or selling

I think our investment is secure.

I think an investment made in SFMI today is worth less tomorrow since you cannot award yourself shares to keep up with the rate of DILUTION

Dilution will keep SFMI down. Keep waiting.....

By the time SFMI amounts to anything long time shareholders will have their positions diluted into oblivion. Insiders will do just fine as they award themselves more and more of the company by getting tens of millions of shares.

SFMI's outstanding shares have grown from 35,072,494 to a WHOPPING 615,509,218 in 5 years. Those holding in that timeframe have lost 94% of their stake in SFMI. Meanwhile, insiders awarded themselves tens of millions of shares to make up the difference.

If that isn't bad enough, in the same timeframe the share price has dropped from 15 cents to about 2. Thats an 87% loss in share price.

SFMI has started many projects and has not completed anything that has generated a profit. There are more projects on the way and since SFMI has no money that means more DILUTION is coming. So, if you think the numbers above are bad, I think it's just going to get worse......

Slowly but surely investors in SFMI are losing.

How about the ACCELERATING DILUTION this year?

Outstanding shares grew from 344,966,817 to 615,509,218 just this year alone! That's a 43.95% loss in shareholder company ownership.

Now, here's an even more disturbing fact. The outstanding shares have increased from 35,072,494 to a WHOPPING 615,509,218 in the last 5 years, or so. The 94% loss in company ownership shareholders have suffered is bad enough but the REAL BIG PROBLEM is that DILUTION IS ACCELERATING!!!

It took about 4 years to go from 35,072,494 to 344,966,817 shares outstanding, an average of about 77,473,580 shares of DILUTION per year. HOWEVER, DILUTION INCREASED to 270,542,401 shares in just this last year. That is roughly a staggering 4 fold increase in dilution rate. That is bad, no question. At this rate of change it doesn't take a genious to figure out what is going to happen to your share value if the rate of dilution continues to accelerate. This is only a problem if you can't issue yourselves free shares.

Dumb move. Keep Diluting to this one, especially with the cost of drilling! Here are some dilution records.

SFMI has gone from 35,072,494 to a WHOPPING 615,509,218 shares outstanding, a 94% loss in share value for long time shareholders.

With the new drilling and no money in the bank I'd say more DILUTION is guaranteed. Even a small drill program of 1.5 million bucks could easily add 90 million new shares.

1,500,000 / .025 = 60,000,000 new shares plus a 1\2 warrant and we're up 90,000,000 new shares. I would expect the insiders to award themselves a whack of shares to keep up with the rate of dilution and the modus operandi continues. This makes the shares you buy today worth less tomorrow. I'm fully expecting sub 2 cent prices soon. The lack of success on projects (ie. having an unprofitable mill) and the continual dilution has been devastating to this stock.

Don't Worry, Be Happy!

Don't Worry... SFMI has gone from 35,072,494 to a WHOPPING 615,509,218 shares outstanding, a 94% loss in share value for long time shareholders. Be Happy!

Don't Worry... SFMI has a mill and is processing precious metals at a 20% recovery rate and is running at a loss. Be Happy!

Don't Worry... SFMI has a share price of under 2.5 cents, down from 15 cents 5 years ago, more than an 80% loss. Be Happy!

Don't Worry... SFMI has an unfinished smelter project. Be Happy!

Don't Worry... SFMI pays for all their projects with shares and massively dilutes their shareholders. Be Happy!

Don't Worry... SFMI keeps the insiders share value intact by issuing them tens of millions of shares to keep up with and exceed the rate of dilution. Be Happy!

Don't Worry... SFMI is broke so more dilution is on the way to pay for more projects! Be Happy!

Don't Worry... SFMI has many family members on the payroll and your dilution pays for their salaries. Be Happy!

Don't Worry... SFMI has an advisory board. Be Happy!

Don't Worry... Your massive losses are likely to continue using past performance as an indicator of future performance. Be Happy!

Don't Worry... It's just a loss of your money. Be Happy!

Don't Worry... As long as there is dilution to fund new projects they keep getting paid and your shares become worth less. Be Happy!

I'm worried about the past and remind you that in the last 5 years that SFMI has gone from 35,072,494 to a WHOPPING 615,509,218 shares outstanding, a 94% loss in company ownership for long time shareholders. To add insult to injury the share price has dropped from 15 cents to under 2.5 cents in those same 5 years, or more than an 80% loss.

Time to re-evaluate making investments ahead of projects like the Sinker Tunnel since history has shown us the company pays for their projects with shares, which destroys shareholder value. This wouldn't be so bad if you could award yourself tens of millions of shares to keep up with the massive loss in share value.

Past history is the best indicator of future performance. Past performance has given us a bunch of projects which resulted in;

1. The company being unprofitable
2. Shareholders being massively diluted
3. Insiders being awarded tens of millions of shares

SFMI - Has been an Abysmal Investment

On November 1st, 2007, SFMI had 35,072,494 shares outstanding. That day the stock opened at 25 cents and closed at 15 cents. In five years SFMI has managed to go from 15 cents to 2.5 cents. This is an 83% loss in share price. However, that number is actually generous because it does not factor in the MASSIVE DILUTION that has taken place over the 5 years. Since November 1st, 2007, SFMI's outstanding shares have grown from 35,072,494 to a WHOPPING 615,509,218. That is a 94% loss in company ownership. The bottom line is that not only do you own 94% less of the company your shares are worth 83% less. In addition, it's very probable that the outstanding shares are much higher than the last official number of 615,509,218. The company requires a lot of cash to move their projects forward and they are spending. Since the company is not profitable and they typically pay their bills by issuing shares the outstanding shares is likely much higher than the last official number. SFMI has been an abysmal investment.

In practical terms, if you owned 6 million shares, those shares initially owned 17% of the company. After 5 years you would only own just under 1% of the company and your shares went down in price 83 percent, from 15 cents to 2.5, and that is being generous since the shares opened on November 1st, 2007, at 25 cents, not the 15 cents used here.

For some insiders this has not been a problem because they were awarded more than enough shares to make up for the massive loss in value common shareholders have suffered.

Yup, that is DILUTION....Undeniable Dilution for SFMI.

Yup, the DILUTION is real. The last round of dilution pushed the outstanding shares from 344,966,817 to 615,509,218. That round created a 43% loss in value for long term shareholders.

Bud, thanks for the 101 on dilution

No problem.... Don't mind at all educating people like you that don't understand the devastation that MASSIVE DILUTION inflicts on share value.

It's too bad PP has had to spend so much money just trying to keep up with the constant dilution. Maybe now that he is on the board he will get millions of free options?

I wonder how much dilution is being created to pay for all the latest expenditures?

Too bad all the years of diluting the common shareholders didn't amount to anything. All that dilution and what does SFMI have? Here's a small list;

1. A mill that is unprofitable
2. A half built vault
3. A half built smelter
4. A pile of partially processed ore
5. A very well paid management team
6. A 2.5 cent share price
7. A group of HEAVILY DILUTED long term common shareholders
8. An advisory board to give counsel to the family led board

You gotta love SFMI....No, you don't.....

this isn't a smokescreen exploration company.

Correct, it's a DILUTION factory.

This is the real deal...

Yup, the DILUTION is real. The last round of dilution pushed the outstanding shares from 344,966,817 to 615,509,218. That round created a 43% loss in value for long term shareholders.

photos of the progress of the mill and Sinker Tunnel drilling program coming soon....

My bet is that more MASSIVE DILUTION is coming soon.....

Stay Tuned....!!!

Yes, stay tuned and you'll get to see how much dilution is coming...

If you build it, drill it..the buyers will come!!

The buyers have been buying for years and they have been rewarded with a 2.5 cent share price, dilution that is creaming their share value, all the while insiders get massive amounts of shares awarded to them. It's too bad and the company isn't even profitable......

Spud, how does dilution benefit the insiders with the stock at 2.5 cents?

First, the MASSIVE dilution inflicted on SFMI shareholders is one of the reasons the share price is at a pathetic 2.5 cents..... The insiders receiving all those shares benefit because the rate at which they are receiving shares is greater than the rate at which dilution is occuring. Also, one hundred million shares at 2.5 cents equates to 2.5 million dollars. This makes up for the loss in value caused by the dilution. Further, it's not bad pay for a group that has had very poor performance. Now, contrast the insiders winfall to a shareholder who holds a million shares. Since they cannot replenish their share value by issuing themselves shares the dilution causes them to own a smaller piece of the pie. So, prior to the last MASSIVE dilution there was 344,966,817 shares and then it jumped 615,509,218. At one million shares you owned .289% of SFMI prior to the MASSIVE dilution. After the dilution those one million shares only owned .16% of the company. A loss in shareholder value of about 43%.

Wouldn't the price have to eventually increase for them to realize any real gain?

I think that 2.5 million dollars is REAL gain and there is another problem. Since the family owns about 300 million shares that equates to about 3 million dollars per penny. The shares price does not have to move much for them to be filthy rich. At just 5 cents they could cash out at 15 million dollars.

There would have to be much more volume for them to be able to sell ANY shares and not have the price drop even further.

They could sell the whole company for 5 cents and make out like bandits.

The way I see it the ONLY way for the Quillams to realize a profit here is to do whatever it takes to get the share price HIGHER. Which is precisely why I am invested here.

They could sell right now and be profitable. At about 300 million shares that equates to about 7.5 million right now. Most people are down on their SFMI investment. At 5 cents the insiders do very well and most common shareholders are at a loss, and most of this can be attributed directly to the dilution of the common shareholder and the issuing of shares to insiders.

Drilling is the next step to progressing this company forward.

It depends on how you view moving forward? How much dilution is going to be inflicted on the common shareholder and how many shares are the insiders going to award themselves? Perhaps the common shareholder is diluted another 50% and the insiders award themselves enough shares to offset that 50% by a wider margin? You get squashed and they can sell the company for a nickel and do VERY well.

DILUTION is a value destroyer and the company has no problem diluting the shares .

MASSIVE DILUTION IS THE ANSWER. That is how they pay for things. This kills shareholder value and that is of no consequence to them since they can just issue themselves millions of shares to make up for the lost value. The sad thing is that for all that infrastructure they are not a profitable company. So, and again, the common shareholder is the big loser because the DILUTION continues to pay for things and the common shareholders continues to lose value while the insiders keep par by issuing shares to themselves.

PP and the DILUTION Factory, SFMI.

PP is no different than the rest of the shareholders that have been HEAVILY DILUTED and have lost MASSIVE amounts of value due to the ongoing dilution factory, SFMI. The only way to keep the same value as you had prior to the massive issuing of new shares is to buy more. Unfortunately, only a select few insiders get to be the recipients of the FREE newly created shares. The rest of the shareholders simply lose value or buy more to try and keep up with the continual loss of real value.

You should really start reading the financial statements. It's all in there......

There is nobody running against them and they make the rules and pay themselves whatever they want.

Yes, they have full control and will do whatever they want. These two are truly pathetic. This is what I believe will happen. They will bumble through the meeting unscathed. They'll go with the 20 to 1 reverse split and then do another financing. That financing will dilute the share base into oblivion but the two clowns running PCFG will be alright since they just awarded half the company, or so, to themselves. With the new cash in the register they'll ATTEMPT another go at the Black Rock Canyon mine but since neither of them have a clue about how to run a mining business they will fail yet again. Not a problem for them since they'll just pay themselves well and do financings whenever they're out of cash. Dilution is a non-issue since they'll just award themselves MASSIVE amounts of shares when required. PCFG is classic penny stock and the kind of stock that gives the pennies a bad name.

PCFG IS A Toasted DODO BIRD.

Twenty to one reverse split coming, mine shut down, can't get workers, no cash, pizz poor production, and a tenth of a cent share price add up to PCFG is going NOWHERE any time soon. It's a BUST!

The Mirage of Shareholder Value.

"People need to realize the more vested the Quillams become with shares and time, the more they will do whatever it takes to make this company successful, most likely a buyout down the road."

Actually, this works exactly the opposite to your supposition. The reality is that the more shares they take for themselves the less need there is for a high share price in order for them to make very good money. However, the common shareholder is in need of a MUCH higher shareprice because their shares have lost value due to the MASSIVE DILUTION. I believe the family owns about 300,000,000 shares between them. That works out to 3 million bucks a penny. So even a 5 cent share price puts them into a very nice retirement. At a 5 cent share price most of the common shareholders have not even broken even.....


Remember their shares are worth absolutely nothing at these levels, nothing.

They hold roughly 300,000,000 shares and at .0275 cents that works out to 8.25 million bucks. That is a lot more than absolutely nothing.

They need the share price to rise substantially for them to realize any significant gain.

Not true. Now that they own so many shares the stock price doesn't have to move much at all in order for them to make HUGE money. If the share price manages to get to 7 cents they could sell out for 21 million dollars. At 7 cents most shareholders are losing money.

And THAT is the same goal I have. How sweet.

Too bad your goal does not sync with theirs.

Massive Dilution is VERY BAD for those that are not the recipients of the new shares. In this case the oldest shareholders lose the most.

Evaporating Shareholder Value

Dilution increased from 344,966,817 to 615,509,218 shares earlier this year. Common shareholders were diluted 270,542,401 shares so far this year and I believe there is A LOT MORE COMING.

How much equity are the new insiders going to take for themselves, at the expense of the long term common shareholder?

Dilution increased from 344,966,817 to 615,509,218 shares earlier this year. Since then the company has purchased much more equipment, etc. How much more MASSIVE DILUTION IS on the books but not public? The buyback program is insignificant compared to the type of MASSIVE DILUTION SFMI management practices. Common shareholders were diluted 270,542,401 shares so far this year and I believe there is A LOT MORE COMING.

And lets not forget the MASSIVE dilution not yet public knowledge that is going to pay for all the next attempts at getting the precious metals out of the ore. As the costs increase, so does the dilution, which devalues the stock price. That is why the stock is sub 3 cents and the insiders know that unless they award themselves obscene amounts of shares they, too, will lose value. It's okay to devalue the common shareholder but they will not allow that for insiders.