Q&A with Charles Moskowitz
(sorry this is conversational, but it is what it is...enjoy):
On Tue, Jan 5, 2010 at 10:47 AM, Brian Rubick <brian.rubick@gmail.com> wrote:
Hey Charles,
How was your New Year? I hope you had a good celebration!
Just checking in to see if you feel good about a PR being issued this week.
Couple Questions:
1) Do we need a buyer with smelter priority to be viable?
2) Does the answer to #1 dictate the chances of reaching an agreement with LTF?
3) How close are we on talks with a buyer and LTF?
4) How will the tough winter affect mine production and profits?
5) How is the new lead engineer fitting in? Does he have everyone's support? I can't remember who was let go, but make sure the website is updated to reflect the new leadership. I know the website doesn't get much attention or love, but it is the face of the company at this point.
Brian:
The new interim buyer (we shipped 475 tons in the last 2 1/2 weeks) does have the priority for us...We have several deal proposals for the financing and while everyone assumes the worst, that we have a drop-dead date, it is not strictly true. Our lien holders are not institutional, and have had the foreclosure remedy for the past 2 years, they are also equity owners. I would doubt that they would hurt their equity holdings by making foreclosure an issue.
The new engineer has gotten rave reviews...
Thanks for your continued support...
CAM
On Thu, Jan 7, 2010 at 6:55 PM, Brian Rubick <brian.rubick@gmail.com> wrote:
Charles,
Thank you very much for the great news. I will continue to keep hope that this round of relationships and partnerships hold. I have always been very optimistic of CPRK ever since visiting the Mill in Nov. 08 and you know where we were at that point. I am very happy to hear we are shipping tonnage and that we have priority. I will keep a level head about me through these developments and keep faith that MD and the rest of leadership has us shareholders in their best interests.
Do you have any clue when MD will allow the PR regarding this information to hit the airwaves? Is he keeping an even closer stranglehold on this given that the last relationship fizzled?
On top of the 475 tons, are we sending regular shipments to this new buyer or was this simply stockpile? Is the mill currently operational? Were there major changes ordered upon the new mill engineer coming on board?
Thanks Charles!
Brian
Brian:
Mark will allow a PR as soon as we have FINALIZED our agreements...
The shipments were from existing stockpile based on our "interim" agreement...again, as soon as we finalize the LT agreement we will say so. My understanding is that the Mill is operating and all I know about the new manager is that everyone who has seen or met with him gives a rave review..
Charles
On Thu, Jan 7, 2010 at 8:03 PM, Brian Rubick <brian.rubick@gmail.com> wrote:
Charles,
So, MD is waiting for the LT financing agreement to be FINALIZED before announcing that we have shipped an additional 475 tons or is that yet another agreement that is pending. I guess my question is will the next PR cover both or will a PR statement be issued once either or is final. Are you buying as much as you can given the share price and how close these agreements are to final or are you waiting for INK before further purchase?
Brian
Brian
Not what I said...The interim agreement is for selling con...We are waiting to finalize the LT PURCHASE agreement before we announce who we sold to, and that we will be selling to them for the LT....NOTHING to do with Financing...Unfortunately, I have the majority of my stock at Etrade, and am looking to open a new account for further purchases...
CAM
On Fri, Jan 8, 2010 at 1:29 PM, Brian Rubick <brian.rubick@gmail.com> wrote:
Hey Charles,
Sorry for the confusion. It was based on this, "We have several deal proposals for the financing and while everyone assumes the worst, that we have a drop-dead date, it is not strictly true. Our lien holders are not institutional, and have had the foreclosure remedy for the past 2 years, they are also equity owners. I would doubt that they would hurt their equity holdings by making foreclosure an issue." I have always heard on the board that the drop dead date was based on short term financing and looming bankruptcy. Aren't lein holders short term financers? What would these people have to do with the CuCon contract? The CuCon contract would be the catalyst for keeping them at bay, but that's where my confusion was created. Where are the conversations in terms of long term financing? What pieces from a mill/production perspective need to be in place before anyone will give us better interest rates?
Obviously I am all wet here with connecting dots that don't connect, but in regards to the CuCon contract. What financing would need to be worked out? Are you referring to the contract's value and what we get paid for each truckload? I guess I don't think of that as financing, but payment.
Please set me straight when you get a chance. And by the way, I want you to know that any information you share with me is not going to be posted on the CPRK boards. Those people are going to have stokes with the way they live and die by each PR statement and the inability to shut off their computers and just wait.
Thanks!
Brian
Brian:
The financing is the ST and LT issue...nothing to do with concentrate sales...The final negotiations on the con sales have nothing to do with prices...all prices are based on 30 day averages...I'm sure it has more to do with quality control and scheduling...
As I said, the lien holders are individuals and are also invested on the EQUITY side, so a foreclosure on the drop dead date would harm them on the equity side... I would guess it will be extended.....
And frankly, I have no issue with you posting the content of our call...I didn't tell you anything I wouldn't tell any investor who took the time to call and ask me direct questions...
CAM
On Fri, Jan 8, 2010 at 3:02 PM, Brian Rubick <brian.rubick@gmail.com> wrote:
CAM,
When you get a chance, can you please clarify the ST and LT issue for me. What is our current ST situation? When do our loans mature? I heard from the message board that LT was in town before the holidays, but haven't really logged on since. Do you believe that securing LT is the biggest remaining hurdle for CPRK to start becoming transparent and move to a more established exchange? How is the paperwork regarding transparency coming along?
B
Brian:
The short term side is included in the total debt, and the Company is trying to take care of BOTH with the LTF....I believe that the ST issue is really not as important as some make it out to be.....Most of those folks are folks, not institutions...and they have had the foreclosure remedy for 2 years...they are also equity holders and would hurt themselves by making the stock decline...
I do believe that we are getting close to a LTF deal that would facilitate elimination of short and longterm obligations and be serviced by our ability to run the mill along with the prospective new LT buyer of our concentrate.
The fully reporting status is still $200,000 and 45-60 days away, although we could become "Pinksheets" compliant in probably less than 30 days and for a lot less money..
I hope this answers your questions...if not, just send them along or call...
Charles
Hey Charles,
Hope you're having a great week. Thought of a couple more quick questions.
1) There were rumors on the board about some vote to take the company private. I know RDG said he got a straight answer from you that this is not true, but I am checking myself. Was there even a story or talk about this?
No going private has been discussed by BOD..
2) Are there any lingering effects from our failed agreement with RBS Sempra that CPRK is on the hook for? I want to make sure I understand the past as much as the future.
No, we are replacing them...they failed, not us.
3) Do you have a gut feel on when the LT CuCon interim agreement will be finalized?
In the relative short term.
4) You mentioned that we shipped 475 tons of CuCon for the interim agreement. Is that the total number that the interim agreement will be based on or are we continuing to truck additional loads?
The 475 was already shipped under the interim agreement. We are not shipping right now since the mill was down during Xmas-new years and we are installing the additional floatation cells now.
5) When is the next Bill Chippas Show?
Whenever I want it...I'm awaiting "meaningful info" before I do it...
6) What's your gut telling you?
I'm long and staying that way...
Thanks,
Brian
