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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@BenjaminCoxWe have a couple, that we have not been focusing on due to them not being material to a top 3 mining company, including a decent Zinc asset, and a core copper asset that has lots of historical work, the work with our past partner was focused on finding the huge asset, the multi billion dollar home run, and they had no interest in our Zinc that is all of 300m from the ocean and well drilled for example.
@BenjaminCox@sarb I will continue to assess dilution vs work and make calls, a sloppy structure is no way to win in the long term, but dilution is not all bad. As an ex hedge fund guy I like selling out of the money options, on stuff I can't afford to touch anyways, and when they come back, oh well. Tom as CEO is also doing his part, I am really impressed with his handle on the geology and team building.
@BenjaminCoxI can answer some questions, 1) we don't have a resource so we can't comment on enough copper, but there are some decent by global standards intersections. 2) The scale of the investment wholly depends on the product sought. I am supporting the ore sorting team at Outotec and if you put in a small capex plant coupled with decent intersections, you can reduce the capex. 3) Tom is buying, I already own a few million shares I think 4 +. I think it is a great deal for the risk reward, but I am management.
@BenjaminCoxCominco's goal was unrealistic they wanted 40mt of 4% from the core showings within 100m of surface, considering I think our average grade of an intersection is 1.8%.... They drilled from 1996-2000 a period of copper price softness.
@BenjaminCoxThe thing is CAPEX is really dependent on the path you take to get product to market, and the product that you deem economic.I am working on a project where the con grade is way to low, but the cost to upgrade the equipment will pay back in months.
@BenjaminCoxthe biggest take away I have with my dual role, is consultants sell studies that work of the same process and precious little time is spent on economics or process changes. These are not bad consultants, actually I think they tend to be pretty good at their job, but real solutions requires turning most projects around and changing the question.
@BenjaminCoxIts not that they want to do it, but the whole point of how they sell that phase is how cheaply can we do a study, not do we have an extra year to play with economic models to find what would make this "proeject" shine. 60% of my job at Outotec is to review projects and figure out how to make them shine economically, and figure out the value proposition. I have time as a i have global mandate and I can choose the projects I want to work on.
@DanOI am doing three or four different things right now and I am not @BenjaminCox so I'll have to leave this forum for now and get back to giving some info and a map to a co interested in some claims. But I am glad to have joined you. Cheers.
@BenjaminCoxJust assume $5m in capital, and $200k/y in public co costs.. that is a 4% fee for liquidity, that if you just offered a bond style 4/20 management fee, and 80% of shares gets spun out to shareholders after hold + royalties are bulk sold/reinvested you would have a very attractive structure
@BenjaminCoxThat gives you $200k for salaries + 20% of the take, assuming you can get $500k in shares/year + royalties, you are giving investors 4% in stock as dividends + upside from royalty portfolio.. Shareholders have to be willing to trade junior paper, and get paid in it. BTW I think with active management and $5m in capital, and no public market overhead, you should be able to generate $1m a year in paper + royalties.. Not going to get rich, but with 2 FT employees and a quarter time lawyer you are going to do just fine.
@BenjaminCoxA private company with $5m from 2 investors can run its back office for $2k/m including a $10k/y audit, Its just that much cheaper as the audit is simpler, the paperwork is simpler, and the paperwork is simpler. Heck the TSX wants to review every transaction of a public company, and get paid..
@BenjaminCoxComing back from Chile, and popping into the index, and it is like I never left it the last time 4-5 days ago when I checked it. The shear amount of repeating on ION was educational, then interesting, then a show that I could not stop watching, and now it is just over over way way over hashed. Allan has to be 30% of the posts on this site (I know I am over estimating), but when he is not walking his dog he must be here. Just reduces the ability to justify posting.
@VaughanAgreed @BenjaminCox, and though you might be exagerating on the shear volume of posts by allan alone, add in allbshere and lowball, and you easily have 30%+ of all posts to the index. I think it should be made clear as well that though the three amigos like to point to "who posts the most" and "everyone else are just lurkers", i imagine many, many users simply do not post on the index because of the monopolization of air time.