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Microcap & Penny Stocks : STAX -----> Stelax Industries - A real gem.
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To: bob culshaw who wrote (531)2/28/1998 12:45:00 PM
From: Eric G. Erpenbeck  Read Replies (1) of 1112
 
Bob,

To answer your questions directly! These two contracts that you are referring two with with ASA Alloys and Schmolz & Bickenbach (S&B) were not hard money contracts. The ASA deal was a $25M dollar agreement for Stainless Steel and was renewable every three years. The S&B agreement was a $9 million dollar agreement beginning on November 11, 1996 for 12 months. These orders were based on STELAX's ability to produce the product and production rates. Since production was never brought to fruition neither was the anticipated revenues and hence the balance sheet is where it is today. Since SS is now being dropped, these revenues will never be seen. I hope this clarifies this for you. I don't believe any investor was depending on the SS production anyway with STELAX. I wish you the best you have been an overly loyal investor and investor like you deserve to be rewarded.
The relevant questions now are:

(1) How is production of Nuovinox coming?
(2) How many tons per day are being produced?
(3) What is the profit margin per ton
(4) Where are the backlog orders for the product and how many total tons are on backorder currently?
(5) What is the status of the second mill?
(6) What negotiations are in process for a distribution/licensing agreement?

I can tell you my expected answers, there won't be any!! Just my take based on the long past. Still hiding in shadows!!

My best regards,

Eric
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