Until Money Arrives:
The unfortunately reality is that CPRK has no money. We all know this, but it's finally set in for me. I used to believe that once we established an LT buyer, we'd just start the mill back up and we'd be good to go because we would have a profit stream. Well, my pom poms were clouding my vision. Don't get my wrong, I am still LONG and my pom poms are still by my side, but reality glasses now sit upon my nose.
IMO
The Good:
- We currently have an established LT buyer for our concentrate. The deal has been in place for months, based on the 475 tons we sent the end of 2009.
- LONGs and internal investors are keeping us afloat. MM's don't want this to go under (yet) or they would have already forced us there. No news and no profits would make this an easy collapse.
- Big boy talks have happened
The Bad
- Big boy talks have happened
- Management hasn't held up their end of the bargain
- Lawyers have recommended a PR blackout (could be bad or good in the end, but bad for now)
- STF or LTF is our only savior
- I hate to admit it, but I think Obama's right about potentially a couple billion increase in the AS/OS. There is no way someone would produce the STF/LTF needed w/o a serious cut of the profits. Only way to pay that off is a significant slice of the pie (shares). If that results in an increase to pay off the lender, but then some of the LTF goes to rebuying shares, maybe it's not so bad?
- Workers can work for free and pray for financing like the rest of us shareholders, but they can't work on good will much longer
- The fact remains that even with an LT buyer, expensive materials are needed in order to start the mill. My understanding is that the chemicals used to break down the copper ore are expensive and like anything else, there are cheaper and more expensive grades of it. So, until we can afford the higher grade chemicals to match our processing times and frequencies, we are left with lower grades of CuCon and more than likely, penalties at the smelter. And that's only if we can turn on the mill!
So, at this point, the bad looks worse than the good, but it's only 1 deal (STF or LTF) away from turning this ship back on course and putting a slow end to all the speculation, stress, and anxiety that has consumed the CPRK employees, shareholders, and anyone who truly has an interest in seeing this company prosper.
Peace,
VVV
