IPKL CEO conversation.
Posted by: dcbass
In reply to: flix who wrote msg# 7689 Date:10/12/2006 6:12:49 PM
Post #of 7742
I just spoke to the CEO, Mr. Kanno. He seems to be a very straight forward guy. Here is a summary of the conversation.
MAnagement and insiders hold about 15% of OS. Maybe 25% are closely held by family and long term holders. No immediate plans of dilution going forward, although he wouldn't rule it out completely. They do good DD to make sure that any dilution is worthwhile, but anyway none in the near term.
There will be a new web site up on Monday.
The joint venture is moving forward. He just received a fed ex package from China. I didn't find out details, but the sense was that things are progressing.
They brought the Chinese Govt in as a partner and he doesn't see any threat to the business deal from them.
The JV partner is very aggressive re the business plan. IPKL had a four year plan and the Chinese partner (CCII) wants to make that happen in one year, not four.
Chinese law allows the following:
25% revenue from JV for foreign firms with 'simple tech'.
35% revenue from JV for foreign firms with 'sophisticated tech'. THat is IPKL. They plan on basing from the 25% range and then negotiating up after the JV is complete.
Margins should be 40 to 50% worst case and 60 to 65% best case.
Revenue from small mines approx .5 mil
from med sized mines .75 mil
from large mines 1 to 1.5 mil
He also mentioned that this company has become the 'darling of the pink sheet world these past few weeks'.
Regarding uplisting, they are focused on the business side of things right now, so uplisting is not the priority yet. The pink sheets have been good to them so far (I've never heard that before! ).
Hope that this helps.
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