Hi everyone, How are things?
I am slow to get back to people these days.
With our 2 week old baby(plus two other children age 4 and 2) it has been
very busy in our house.
I met with Carl Ash (chief financial officer) at the EMR offices on Allison Blvd. This is what I remember from our discussion. He seemed quite nice and very professional.
In the main offices, there is the business section and the
testing/laboratory section.
They have 'all the equipment' in this testing/lab. area.The prototype
machine,which is what they run all their samples on.This machine takes the
ore and suspends it inside a large metallic tube(it looks like an
upside-down,steel coated rocket ship about 5 feet in length with the point
down).The microwaves then heat the ore to high temperatures while it is
suspended in the tube,which alters the molecular structure making the
minerals in the ore more accessible to the normal leaching/recovery
processes.
In essence, EMR is adding another step in the process of mineral
recovery,but allow more minerals to be recovered and at a cheaper cost.
The labs also determine how much minerals are recovered(on site) with their
fancy spectrometers.
What happens is...a mining company sends a sample of ore from their XYZ
mine and EMR runs it through the microwave and analyzes the results.They
compare their recovery with the known recovery percentage(using standard
techniques) and compare the cost of the improved recovery.Carl said that it
takes 1-2 months to complete each sample.If everthing goes as planned, the
mining company will purchase the Technology and use it for their XYZ mine.
There were many samples(all labelled inside tupper-ware looking
containers.The top sample was from a mine in northern Quebec from Noranda.
The EMR company is at various stages of various samples of many different
mining companies.
EMR has all they need at the main office/testing/lab area. The company
didn't want to have to build the project plant,but the big mining companies
wanted to see the technology work at large scale before they consider
buying the technology.So EMR built the project plant in Lincoln.
Carl and I went out to the plant.It was the exact same machine/equipment
that was present in the main offices except 10 times as big.All it does is
prove the technology at large scale.There were dozens of big oil drums
filled with ore which were being processed.
Carl told me basically...1)The technology has been proven.
2)The technology has been proven at large
scale.
3)The technology has been patented.
4)There is no competition in the market,
and if someone else tried to develop the technology,they would have to
start from scratch(EMR has been developing the technology for >5 years, so
any competition would be waaay behind.Also, any competition would have to
get around EMR's tight patents.
5)EMR is a "Royalty Company"! EMR does
"not" make a bunch of these microwave machines and store them in a
warehouse.Mining companies 'buy' the technology and build it themselves
paying EMR a Royalty of 2-5% (or more) of the total production for using EMR's
technology.It means that the shareholders don't have alot of costs each year.
6)Carl said that EMR hopes to lock down a
minimum of 4 contracts this year(Minex already being considered #1).He said
they would like to get a minimum of 8 contracts each year after that.He
figures that each contract would increase the stock price by at least .50
cents canadian.EMR is hoping for a stock price or 2.00-3.00 by the end of
the year.
7)I ask him"what is stopping this from
being a $20 stock in 5 years time?" and he responded "absolutely nothing if all goes well".
Insiders own~ 1/3 of shares.This is a great incentive to
succeed in my opinion.
8)Down side ?........I asked this
question to Carl.......and he thinks that the worst case scenerio is that
some big company would buy the technology/company out-right.Obviously EMR
would not want this because of it's enormous potential.
9)Now EMR is selling itself with Forums
and Conferences almost every month.
10)20-30 of "the biggest mining companies
in the world" have toured the pilot plant in the past few months and are
'very' interested since EMR has proven the technology at large scale.They
are at various stages of processing and negotiations with some of these
companies.
11)Carl said that they are trying to model
themselves after Euro/Franco Nevada.This is a royalty company which was
small like EMR approx. 10 years ago but is now worth ~$ 70/share
equivilant. EMR has much..much...much more potential than Euro/Franco Nevada
because EMR's technology may work for Gold/Silver/Copper.........etc,etc,etc and oil .
I'm convinced!!!
I am now a shareholder.
Gary Baker. |
