More stuff from Bobwins.
Posted by: Bobwins
In reply to: wrongjoe who wrote msg# 2351 Date:10/28/2006 1:54:02 PM
Post #of 2353
wrongjoe. There are a couple ways for you to investigate Tara. First, let's look at the negatives.
1. Pink sheet status so no reporting of financials or SEC reporting. This is supposed to be fixed by yearend. Mexican subsidiary is the problem. They bought it and it's the source of their deals but the financials have been tough to get a CPA to sign off on. Deloitte Touche unit in Mexico is supposedly working to get it ready for audit by a US firm named in a recent PR.
2. Why does Tara claim to be able to find properties that others can't? How can they do this with little cash and no mining professionals or geologists on staff?
These are weaknesses that I admit are hard to get around.
However, let's look at the positives.
1. Their deals are ALL with reporting companies.
Raven, rvgc.ob
Paramount, Pdgp.ob
Columbia Metals, Col.v
Lateegra, Lgr.v
If Tara was a scam, would these reporting companies do business with them? Wouldn't they check out the properties with geologists and check Tara's title claims?
In fact Paramount, Columbia and Lateegra have gone to the public markets to raise money to explore Tara jt venture properties after making the deals. Can all four of these listed companies be wrong? I presume they have kicked the dirt and examined the title to these mining properties.
The total value of the stock held by Tara of their jt venture partners is currently $4,920,247.50. I publish their listed value each week.
The other valuable fact is that these public companies will report on their mining progress on the Tara properties and even if Tara isn't immediately listed otc, we will have a window into the progress of the projects thru their partners. We know the percentages of each project that Tara holds and can extrapolate any financial results from that.
2. Three of the jt venture projects were closed mining operations with existing infrastructure and equipment. That has been the model, find properties with near term production ability to generate cashflow.
We will be able to tell very soon if Tara's partners restart the mines and produce revenues. Two of them reported last week that they are moving toward production with low cost heap leach mining operations. One already has ore loaded on the pile and is getting ready to retreive gold that has been sitting there for many years after the mine shutdown.
3. The story jibes with history. These mines closed due to low gold/silver prices. We know that is true. There is history on several of the properties that can be verified.
4. CEO Rich Biscan has demonstrated that he doesn't want to dilute. These deals with public companies are done. Not PR'd to be coming but DONE! No dilution, cash to Tara, increasing retained percentages for Tara as each deal is done because Tara is in a better bargaining position. Each deal adds a small amount of current cashflow and shares of partner's stock and future cashflow to Tara's side of the ledger. Because Tara has a minimal staff and won't be operating the mines, the small cashflow is sufficient to maintain operations without issuing shares like most junior exploration companies.
5. Public PR's from Tara's partners have pretty much verificed what Tara stated about the projects in their original Jt Venture announcements. If these were bogus projects, there would be cancelled projects.
6. Tara has demonstrated they have connections. There are plenty of junior exploration companies in Canada and the US looking for projects. The sector is hot. Tara has what they want. Verified projects that can be moved towards production quickly so they can strike while the iron is hot.
7. As Tara moves into 2007, their cashflow should jump dramatically as La Currita, Lluvia and Picachio move into production. This new cashflow will change Tara's options. They will have cash to do their own projects or keep a much bigger percentage of their projects.
I have spoken with Biscan and find him straight forward. He is not your normal excited precious metals pumper who teases you with little hints about future BIG projects. What he told me has basically happened EXCEPT for the financials and the otc listing. So that's the big hurdle remaining.
The first three projects are not going to set the world on fire. They are small 15-30,000 oz per year mines that will generate positive cashflow at today's prices for these small startup companies. Tara has such small overhead that they will provide a nice cashflow for them.
San Miguel could be a genuinely big project. Paramount has spent a lot of time and money to drill it out and keeps extending the ore zones. They have secured additional surrounding property beyond what Tara sold them, which indicates they are happy with what they have found so far.
Las Minitas could be a large silver project with over 100 million oz of silver.
Biscan is excited about the base metal project and you notice there was not followup jt venture announcement. That has been his previous pattern. He announces Tara has obtained a new project and then immediately announces a jt venture. I think this means that he intends to keep all or most of the base metal project.
Do your DD. I have over 100 stock positions but a concentration of about 30% in gold/silver and Tara is my second biggest gold/silver position. I have bigger positions in established miners like GG, Hbm.to, EZM and decent exposure to AUY but think Tara could be a big winner down the road. My average cost is .31 so I'm already happy. Bobwins
If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
GB-ND
c |
