AmeraMex International Inc. (AMMX)

[JDoggs_Money]

For new friends to this board, hopefully everyone has read the sticky that upperdivison posted from the conference call two months back...it's filled with goodies. I'm copying the contents here too for your viewing pleasure. The more I read, the more excited I get about the Niger deal. I just hope the Chinese don't build crummy trucks. That seems to be the only reason this might go south (although seems unlikely since Lee checked them out). Enjoy...

Notes from Conference Call (2/14/14)

I was about 5 minutes late on the call, but I started taking notes right away. Please keep in mind that I was not able to catch everything, and things may have been misheard. Feel free to correct my notes or add new things to them.

- Buying trucks in China, selling in Niger
---- Rationale
------- Half price in China
------- Chinese Government will help finance
---- Lee Hamre inspected the trucks during his trip to China
------- Lee met with Niger government 10 days ago
------- Good relationship
------- They want to give him the contract
------- Lee firmly believes this will be their first large project in Africa (After 30 trips )
------- $270 million initial sale with same profit margin (expected)
------- Next step will be to go to Niger when paperwork is ready.
------- Hamre will travel with Niger government to China to inspect the trucks to make sure they are happy with them. After that, the contract should be awarded.
------- 40 Million port project in the area as well (public/private partnership, but AMMX gets preferential treatment)
---- Working with NY based finance company to help fund West African countries
- AMMX is putting energy into projects that will close soon instead of ones that will take longer.
- AMMX has connections in the Congo
---- Congo connections requesting Hamre to bring in an oil drilling company
------- Proven source of crude oil
------- New business model, not just equipment sales
------- Working towards increasing Hamre rental fleet
---- After a recession, more customers want to rent instead of buying
- $23-24 million in gross sales back in the day, but lower gross profit than now
---- Used equipment has higher profit margin
- Acquisition Strategy
---- Expanding international presence in resource rich countries
---- New Equipment expected sales flat in the US
------- International sales expected to grow

Questions and Answers

Question: How much crude oil is in the Congo?
Answer: Lee doesn’t know yet

Question: Update on coffee business?
Answer: Got a letter of credit from CitiBank to buy the coffee in Ivory Coast. Was going to transfer it but the person wanted to change the LC, and Lee couldn’t. He could only transfer it. $3.5mm month transaction. Lee is only doing it if they have the money available.

Question: Can you go over the share structure?
Answer: (From Kevin) 1bil A/S. 520mm O/S. Management 180mm shares. 230mm float. 288mm restricted.

Question: Update on the audit?
Answer: Previously AMMX put a lot of money into audits, but discovered they had a lot of things to fix. AMMX didn’t have the money set aside for the audit in the past. Kevin will have the entire cost of the audit set aside soon.

Question: Dilution? Increase in O/S, what can we expect in the future?
Answer: No more dilution after what was mentioned today. Company had big debt to Lee Hamre, but Lee Hamre and Marty are accepting shares as payment. People are confident in the company so they are accepting shares as pay.

Question: Any more debt?
Answer: Still a little more, but AMMX is not behind on paying the debt. Kevin is managing cash flow.

Question: Update on 500mm Ghana project?
Answer: The project will be done in segments, starting in Niger with the 270mm deal.

Question: Is the full 270mm going to AMMX, or are there partners?
Answer: Just AMMX, but they are paying a fee to a local company.

Question: If the 270mm goes through would the company buy back shares or issue a one-time dividend?
Answer: Lee would highly consider it.

Question: After audit, are they planning to upgrade exchanges?
Answer: (Kevin) The audit should be completed 60 days after starting the process. Audit is planned for summer months when during slower times for the accounting firm. (Marty) Nasdaq small cap requires trading at $4/share, which is awhile away. About $50,000 in additional fees to be traded there, which is a lot for a small company. OTC QX is more probable, but a gradual move is planned as the share price allows it. It’s been Lee Hamre’s goal to ring the bell at NASDAQ since Marty met him.

Question: (Not much of a question. Guy goes off on crazy tangent about AMMX, but he’s happy about the stock)
Answer: We need to move on to other questions

Question: What is the timeframe for crude oil project?
Answer: Going in as partners with SAS congo. Lee met with them twice, and he is going back soon, but right now he is focusing on Niger. The project could happen very soon. A drilling company is ready to go at their own expense (can’t divulge the company yet because no contract is signed. They are a Russian company). This would be a new local business, not just an equipment sale. If it comes together, it should be 6 months or less, but no guarantees.

Question: Finance Officer said stock was undervalued. Can he expand? What value does he think it should be?
Answer: They don’t like to place numbers, but Kevin is confident in the direction the company is moving.

Question: Should the 270mm deal be done by the end of the year?
Answer: Yes, the first phase should be done by end of Q2 based on where things are heading now.

Question: How many restricted shares are there?
Answer: 288mm

(Random note) Lee Hamre has no fear that the company will go under. International business saved the company.

Question: What is your confidence in the 270mm deal?
Answer: Right now, it is high. There are a lot of rules and regulations for bids. Lee Hamre is confident that if anyone gets the deal it will be AMMX. There is always a chance in situations like this that it wont be for the full amount, or the deal could change.

Question: When does Niger need the contract to be done for their own needs?
Answer: 5 years ago. (Joke)