Karl: Prior to BRX, IPMCF wasted $30,000,000 of OPM (other people money) on a number of mining ventures that ended up with ZIP. So the track record is not exactly brilliant. You are right, you look at a company's history, the same I said about CHIP, where Montle managed to squander millions of OPM and then get 75% of the company stock for some six months of outsized unpaid salariy. Similarly, the management of this company paid itself outsized consulting fees for wasting those $30,000,000.
As for the cost of the facility, it is not the earth moving that cost that much, it is the extraction plant that may involve very fine grinding (to go from 100 mesh to 400 mesh the cost increases by a factor of 5, unless someone has developed some new technology), it involves high temperature leaching, precipitation, separation, and recovery. I have no idea what is the cost, that is why the large margin. It would be nice to know the troughput time (how long the leaching takes, but I would assume that the fastest rate of 2 hours per batch will already put a crimp on the the capital equipment required). The numbers I gave are not calculated, they are guesses assuming anywhere from $500 to $2000 per ton capacity per day. You can do the calculation the other way and say that plant costs are between a low of 10% of goods produced through it to a high of 300% and take your pick.
The fact of the matter is, the number of $500/share is ridiculous, and should be shoved. You guys have done the due diligence, why don't you know what the cost of this facility will be? I still have doubts in the basic process, tellurium that mask results but cannot be found, hydroxide processes that are not exactly rational, unless they plan to convert the silica matrix to a gooey sodium or potasium silicate, and so on and so forth.
Zeev |
