Good morning and thank you for taking the time to outline your thoghts, and look forward to your observation on my response.
Variables : I quite understand there are variables outside the company's control, I believe my questions have clearly indicated that, and with any micro-cap in the mining sector there are financing difficulties. But if the company can specifically forecast revenues, gross margin and a target start date, and in their 10q other financial requirements but no estimate of mill re-activaton expenses, the company certainly could provide estimates of capital required to go into production. Would it scare me as an inevstor if they projected $2 million required this year to advance toward production - no it wouldn't,it is worrisome how this question avoided.
Experience- I can only go by what experience listed on the 10k. He definitely has financial experience, and since that is what company needs in short term,great. He doesnt appear to have experience in mining production and operations,nor investors relations in this sector. I agree fact they have continued to slog through permitting proces a positive, and you are spot on guy doesnt appear to have received a full cash paycheck and even lent money to company. The information contained in a NI43-101 would be helpful, but of course a formal NI43-101 report not necessary for a US company. The SEC Guide 7 is another matter, that is precisely the SEC Guide on information to be presented for a mining company, the question is do they present this information on their filings.
IR- Fully understand cutting back on IR expense,though it would seem consulting with an IR person would be extremely helpful. FYI I did contact this company a year ago, based on responses I didnt think they would produce in 2012, that they would do a large reverse split. Frankly if I can get answers through reviewing their filings and discussions on this board,so much the better, though I probably will call them when I feel I have answered as much as I can through research.The issue is pretty fundamental, are they presenting their message in a manner that will help build their credibility long term and attract more investor interest.
No one is asking for info to pump the stock- in fact my position the opposite, build credibility by not selectively giving out aggressive forward looking statements.
I completely agree with you that it is run on a shoe string and has huge possible upside. There are few companies with this market cap that have producton potential in a 12 to 36 month time frame. Metal prices are high but 90% of mining stocks were down last year.So speculative potential is huge, hence why I am looking more closely at this company.I actually think with a different way of presenting the company the stock price would improve which would make CFO's job easier.
I guess we can agree on some things, and agree to disagree that a company that is projecting producton in the current year should avoid providing the key fundamental forecasts that support their own projections.
