Notes from the Bill Chippas show/interview:
Here are my notes from listening to the archived links (posted elsewhere on this board) with recordings of the Bill Chippas show. As others have noted, there are three parts to the archive at the link. Our part starts about 1/3rd to 1/2 through the 2nd part and goes to the end of part 3.
Marcus Southworth (MS), Dave McMullin (DM), Charles Moskowitz (CM) all were supposed to be on the show. (MS actually did not come on the show, don't know why they mentioned him or didn't ask about him after the beginning of the show).
These notes are pretty close to what they actually said, but it's not verbatim and some parts are paraphrased. Sorry, I'm not a transcription service, so deal with it.....
Interview started with DM, CM was not on until a couple minutes into the show.
Bill Chippas (Bill) started with DM.
DM - Stated that the flotation plant has been up for a week, some of expected improvements are taking hold. Results have been at least as good as expected overall and in some cases/components of the system are performing better than expected. Flotation cells were added to increase reaction time (exposure time for ore to react with chemicals). Could take as long as a month before they fully realize the benefits of the modifications that were put in place. (i.e., they need a full month of operation to really see what the upgraded mill can do).
Charles joined in at this point.
Bill - "when will financials be released?" CM - No firm time frame - "This (developing accurate financial records) is a process, it's not gonna happen overnight". "Biggest problem was lack of funding that we could specifically earmark for this purpose" (getting the books in order). Ted Davis now CFO, accountant by trade. Fairly certain it won't be within next couple of weeks, but fairly certain it will be within the next couple of months. Need audited financial for PinkSheet, they are working on them.
DM - Much of the heavy lifting of accounting work is done. Now it's a matter of fine tuning. New CEO has mandate to get us a long way down the road as to getting accurate financial info out to public.
CM - remarked that up until past week, there really has been nobody at the helm. MD did great job in consolidating claims, but "he was only one person", processes and machinery (i.e., business support systems/back office) were not in place to do multiple tasks that present management is supposed to do. (i.e., implication is that management was hired on to do).
Mike (Bill Chippas' side-kick??)- "I don't think Pinksheet requires audited financials". CAM - We're doing 'em anyway. We want to be a real company and part of that is to act like one.
CM talking about market for magnetite improving. First 75K tons magnetite goes to an investor. AT design rate we could be making 900 to 1000 tpd. Over next 12 months, somewhere between 150,000 and 250,000 more is possible. $800k/month income which would cover our burn rate.
Financing - not going to discuss, but we are at a critical point. DM - "things are not moving backwards on the financing". "at the cusp of finalizing some of the components in the agreement, I feel good about it." company is loaded with assets.
Assets - CM - before any exploration we have done on our property, even before that, based on hatch report in 2005, still looking at absolutely a sea of copper. At ideal production rate, we're talking 80 years.
(Part II ends)
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Part III
Chippas started by remarking that so many people wanted to hear the show that the server couldn't handle it. Back to interview:
CM - With mill back up, looking at two numbers: Production rate of 2500 tpd ore going in, and eventually up to 3375 tpd ore in. Chippas interrupted to ask about quality of ore, thinks we have higher quality ore - CM other nearby mines work with 0.4% ore profitably. DM Hidden treasure ore is 1.8%. Stuff we already have is very good grade ore, setting aside future developments/projects.
Bill - commented that we are essentially restarting company. CM - at 2500 input range we can produce 25 tad concentrate (maybe up to 35). 25 tad - selling at today's prices we should get $2200/ton. $55K/day from the floatation mill. Planning to run/ship for 320 days/year, but might be able to get it up to 340. DM - our BE/E is about $1.00, provided precious metals basically stay put in price.
Bill - most importantly, do what you say you're going to do.
Mike - OK, (they are) back in production. CM - operating w/new buyer on interim agreement, once we prove ourselves reliable we can probably get a long term agreement. DM - our buyer is very anxious with their customers (implication is they want to make sure we are a reliable supplier before they actually count on us with a long term contract).
Bill - at end of interview: "everyone sees huge potential in CPRK."
End of interview/show.
Very positive report/interview. We are headed in the right direction people. I would have liked to have production numbers for the first few days, but it's probably premature to look for those so quickly. It's rather like asking a newborn baby what his career plans are.....we can wait a few more weeks to see how they're doing. I was very happy to hear Dave McMullin on the show - gives an indication that the new management is making the effort to keep shareholders more closely apprised of things. Also, it won't be long before financials are done. Again, a few to several weeks. Books were probably a mess before - it sounds like we've gone a long way towards getting them in order ("heavy lifting on accounting is already done"). Like George Peppard used to say on The A Team - "I love it when a plan comes together."
M78
