Posted by: roberto77479
After teleconference with SGCP Investor Relations:
Date: Wednesday, April 08, 2009 9:21:29 AM
In reply to: the cork who wrote msg# 11286
Post # of 18605 [Send a link via email] [Share on Facebook] [Tweet this post]
As I stated in my post last night, we (4 of us) spoke with John for two hours. John wants to continue having these conference calls on a regular basis. He suggested every two to three weeks. We talked about a lot of things, some listed below to answer our questions. He discussed his vision for the company and spent some time discussing the farming operations. He said we are breaking even given current operations. We want to be a very profitable company. So, here are his answers to our questions. We can get into a lot more detail later. Very, very good exchange with John IMO.
•
• What is the current number of Authorized Shares (AS) and Outstanding Shares (OS)?
• Answer: One Billion AS, 480 million OS. 400 million are publicly traded. Rest are restricted.
The remaining AS are restricted for use in raising capital. We are property rich, need cash. Company is looking at gold loans, we either pay 20% interest on cash loans or they buy gold from us at a discount to repay the loans. Property and equipment are collateral for the loan. This effort is currently going on. We want to become a real mining company, not be classified as a junior miner.
• Of the AS, what amount is intended to be issued near-term and what will the proceeds be used for?
Answer: See above. John says no more dilution unless stock is part of a capital raising deal. They want the shares restricted with a buy-back option.
• What is the plan to limit/stop the use of the AS? See previous answers.
• Is there any movement in the SEC documentation?
Answer: When rainy season starts, we will file 10K . Want to focus on mining and obtaining equipment. Probably in July/August we will file docs.
• When will the website be updated (other than FR’s) to report project updates, equipment updates, and possibly an updated CEO letter?
Answer: Next FR will be a little late due to John’s surgery. Extraction report next week or so. Doug is considering writing a new CEO letter. PR’s and FR’s will be better written and forward looking, but will be truthful.. We will be more transparent and open to the investors.
• How is security handled at the sites? What measures are in place to prevent workers from pilfering gold and diamonds while on the job?
Answer:Different culture. Elder sons handle security. Any theft would jeapardize the village. It would severely punished. Won’t happen. Punishment is harsh.
Workers are paid a daily stipend and food. There are 125-140 workers on average…John’s guess
• Why and when was the TA gagged and when will that end? The TA was swamped with constant calls. Doug will decide when it ends. Phone calls swamped them.
• Any plans to issue audited financials soon? These will be issued by end of April
• Are both mobile processors working? Yes.
• How many alluvial sites are producing? Currently 4. The intention was to acquire properties of merit. Done. Need more equipment. Looking for capital. Working on that.
• Will our processors be able to work during the rainy season?
Answer:Yes, but it depends on the amount of gravel available . Probably will not operate very much in rainy season (after July) when rivers swell.
• How are gold revenues shared?
Answer: 18.5% goes to gov’t, We pay $100K annually for permits and licenses.
• Has all of the washed ore from the dredges that were operating in Sept and after been processed? Yes.
• Why has management changed to shareholder unfriendly dilution when they had opposed such moves in the past?
Answer: See above
• From a shareholder on iHub: My concern as one of the longs here is: when are John and Doug going to come clean and publicly tell all of the share holders the complete truth about what they are up to.
• Answer: We understand that we have been very careful in what we announce. Also understand that stockholders want more info. We get the message.
• Answer: The current equipment is10 ton capacity for mobility. Need larger equipment at fixed sites. Need about $3 million for various equipment. Are working on it. We supposedly have the concessions that we need to move forward and be a profitable company. If the machinery is lacking then we need to know, as share holders of this company we have the right to know what's going on! See above. Dilution in some cases can be necessary, but this cowardly approach wreaks of typical pink. Basically speaking WE ARE the board of directors and we are looking for some straight answers.
Answer: John understands and we will see a more transparent company in the future.
• Rumors about pending venture capital / collateralized loans are all over the message boards. Can you comment on current plans and/or give any details?
Answer: See answers above.
• If you extracted 70 ounces of gold in February, where is it? How is gold processed after extraction?
Answer: Small amounts are sold at spot price in SL. Larger amounts will be sent out of country to large buyers.
• How long before the company considers hard rock mining? What will it take to do that?
Answer: Very expensive. Hard to finance and difficult to do in SL at this time. Political atmosphere is not conducive to allowing new hard rock mining. Will wait to do this.
