Replies to post #54569 on Silver Falcon Mining Inc. (fka SFMI)

[njdevils950003]

I think a lot of colors and bold face print were used to explain how no dilution was coming. How can dilution still happen when the explanation was so colorful?

[Imperial Whazoo]

OK. So let me get this right. There is a new set of tax laws in place for SFMI to leverage to its significant advantage and these new and/or renewed tax matters allow them to:

- write off 50% of the cost of safety related equipment....

- get a per employee credit for each safety related employee...

- apply accellerated depreciation to any non-safety related equipment purchases they make in 2013...

- write off 50% of the costs of non-attached appertenances tho the mill site...

ALL AT THE PRECISE MOMENT THAT THEY ARE:

- going into the Sinker Tunnel and bolting its entire length for safety required reasons...

- finishing out the vault, the mill extension, the smelter & the lab buildings...

- going forward to build a cyanidization circuit...

AND SOMEHOW THESE TAX ADVANTAGES ARE EXPLAINED BY SHARE DILUTION?

Hmmm....

Very interesting theory...

;o)

So, what IRS form do they fill out to get these dilutive shares associated with all these tax advantages?

Section 179 provisions, maybe?

No.... wait, thats accelerated depreciation, LOL. Not related to allegations of dilution, is it, LOL?

So... How exactly is dilution the explanation for the beneficial aspects of the tax environment in 2013 ?????

Imperial Whazoo

[downsideup]

It's really simple...

A REAL mining company starts by exploring.

IF they find anything useful, then they might move to development... if what they find is good enough that it supports making the investment required to enable that. Then, after a few years in development, they might start mining, and, if they've done everything right to that point, they might even turn a profit.

Of course, SFMI/Goldland have done nothing "right". They've done everything wrong that it is possible to do wrong... and made more money off their investors by doing things wrong.

SFMI has been engaged in selling shares for over six years now... and they haven't even STARTED the process of basic exploration yet...

How much have they paid the "executives" ? How much would it have cost, and how long would it have taken, to actually do enough exploration to validate the interest (or not) ?

There's a REASON they're paying themselves massive salaries to keep failing... because it's a scam to funnel investors $ to management and insiders. Period.

"Before Silver Falcon begins mining raw ore from the mountain, it will need to complete a confirmation phase designed to locate and prove up reserves in the mountain in order to develop a comprehensive plan for the full development of the mine site. Later, after Silver Falcon completes a confirmation program to prove up and locate reserves on the property, and make further capital improvements to the mine site, it plans to begin mining and processing raw ore." http://www.sec.gov/Archives/edgar/data/1444839/000109181812000458/ghdc1113201210q.htm

Meanwhile, they've been sucking money out of investors, and paying the "corporate officers" twice what they should... and then paying them AGAIN, paying them twice what they should, twice, including once as "Goldland" officers...

"We are obligated under employment agreements with our officers to make total salary payments of $668,000 per year."

And, they're PRE-PAYING them twice what they should, even considering the "requirement" is more than twice what it should be: "In January 2012, Silver Falcon Mining issued 43,852,978 shares of its Class A Common Stock valued at $1,534,854 to various officers of Goldland (who are also Silver Falcon Mining, Inc. officers) to pay compensation owed to them by Goldland for the year 2012. We capitalized these payments as a prepaid expense, and amortized the amounts over the twelve months of 2012."

So, only as "Goldland" management... they're supposed to pay the management $668K per year... which is TOTALLY INSANE... and, instead of doing that... they're PREPAYING them $1.53 million ?

LOL!!!

SFMI is a SCAM...

[Macod]

Of course there is dilution, how else are they going to pay for drilling?