Ed,
I have just returned from a visit to Arizona only to find some very upset people in Salt Lake City. They are upset by your post # 5205 in where you put out your "guesstimate" as to the value of the dore and your extrapolation back to the value of the head ore. The reason for the distress is that all feel that you are setting us up to fail since your "guesstimate", is well above what is realistic.
1) <"Dore worth $90 per pound which extrapolates back to $10,800 / ton of head ore." (Roughly your quote I believe.) >
If we were to take this seriously than what you are saying is that the head ore, with gold at $300/oz, contains 10,800/300 = 36 gold equivalent ounces per ton of ore! In my experience, limited though it may be, I feel that this is so outrageous an estimate that it deserves no more comment.
2)<Dore worth $24 per pound, $25,000 / 1031#, extrapolates back to $3,000 / ton of head ore (Again your statement.) >
This translates to 10 gold equivalent ounces per ton and while not as wild as 36 ounces, it is still pretty wild a statement and, I feel, unrealistically high.
Your last statement, <"I eagerly await Auric's numbers and pray that they do not fall below $10,000. That I can live with. Below that I will be very unhappy." >
Taking this statement and your assumption that this translates to $1,200 per ton of head ore, that is still 4 ounces of gold equivalent per ton.
Are you saying that you would be unhappy if had 250,000 tons of only 3 gold equivalent ounces per ton sitting on the surface waiting to be refined? I don't really think so.
In speaking with Russell Twiford about this $90 per pound dore he told me that that figure was given to you about six months ago and he was not talking about the same dore product given to Auric. And in fact this information was given to you when you were associated with Global Platinum as our Shareholder Relations person and was not intended for release to the general public.
Frankly none of us know what we will get out of these first 1031 lbs. of dore bars and I refuse to guess. However, with that said, I do believe that you have confused something told to you by Russell in the past and are being unrealistic in your present expectations. I think there is much more copper in the present dore than Russell was referring to in his $90 per pound statement.
We must all keep in mind that this is the first time a refiner has taken product from us in the form of dore bars and refined them completely.
It is not my intention to post on this thread often however, because of Mr. Fishbane's former position with the company along with what we at Global feel to be inaccurate information, I felt it was necessary. We will attempt to keep all shareholders informed by use of shareholder letters for major announcements and by way of this thread for more day to day matters. The company suggests that all keep in mind that the only official information will come from the company itself.
Forward looking statements:
Statements made by the company that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," "anticipates," "plans," or "expects" is forward-looking, and these statements involve risks and uncertainties and are biased on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
Dennis DeNoble |
