Darci, Mike and all:
Thank you for missing me! I guess my prolonged silence gave me away. I should have expected that--it's not like I was ever known as the quietest kid in the classroom.
Anyway, my spouse went off to watch some fight, I FINALLY got the kids tucked in, and I can at last sit down and catch up on reading my favorite threads. I, too, would like to see some shareholder involvement here, but I think it's critically important HOW we present this idea to DACQ (more on that later).
I'm still quite content to hold my 200K shares and await whatever news may come. Granted the share price has fallen in recent times, but I would not have expected otherwise in a situation like this where the news is so long delayed in coming. However, judging by the relatively modest volumes on DACQ of late at these lows, it looks like there's alot of us who aren't going to let themselves be stampeded into selling their shares just because of this to-be-expected no-news drop.
Here are some items I gleaned from Mr. Cox's 9-24-96 Amended Form 10K (for the FY ending 9-30-95) which may shed a little light on a few of our questions. BUT FIRST, I'LL START WITH THE BIGGEST SURPRISE FROM THE FORM 10-K:
Form 10-K, pages 3-4: "During 1990, the Company's main activity was in its real estate segment . . . Due to the Company's historical operating losses . . . The Company packaged for sale the various assets being held for resale . . . This sale was made to TLM Investments, Inc. (TLM) and was completed April 1, 1991 with an effective date of December 31, 1990. . . . In 1991, the Company exchanged the note receiveable for TLM for 10,000 tons of precious metal ore concentrates and entered into production arrangements with a third party (Century 2000 Corporation) to recover the precious metals from the ore concentrates using new techniques to break complex ores. . . . The Company has presently determined to pursue the processing and extraction of the precious metals in the ore concentrates."
page 13 of the AUDITED financial statement: "During 1992, the Company incorporated an energy subsidiary DACO Energy Group an on June 30, 1992 it acquired natural gas assets totaling $2,126,500 by issuing 2,424,500 shares of the Company's common stock. In 1993, these assets were exchanged for ore concentrates."
page 11 of the auditor's financial statement (Note 1): "During 1993, 25,000 tons of ore concentrates were acquired by the Company in exchange for 2,000,000 shares of the Company's common stock valued at $360,000 amd its oil and gas properties carried at a cost of $2,294,374. No gain or loss was recognized on the exchanges. The Company also entered into a research and precious metals recovery agreement with Century 2000 Corporation, an unrelated company, which has developed a proprietary method for recovering precious metals from concentrates. . . . The process used to recover the metals has not been tested in a commercial setting. Dynamic's ability to pay future operating and overhead expenses and to continue as a going concern depends on the commercial success of metals. The financial statements do not include any adjustments that might result from the outcome of this uncertainty."
COMMENT: This is the first time we've ever heard about this DACQ asset. According to page 12 (Note 2) of the financial statement, the (35,000 tons?) ore concentrates show up as inventory with a stated value of $752,976, with the following note: "Ore concentrates of $4,345,968 are stated at the lower cost or estimated realizable value. Cost represents the carrying value of the assets exchanged for the ore concentrates in nonmonitary transactions as described in Note 1. No gain or loss was recognized on the exchanges. Based on the evaluation of independent specialists, the estimated realizable value of the ore concentrates, which contain gold, silver, and other precious mental, exceeds the carrying value."
QUESTION: Does this piece of information perhaps give us a tantalizing key to something going on behind the scenes here?
I know I'm just making conjectural conections here, but think about it. Why (besides the to-be-expected access to U.S. financial markets) does some Bolivian company that's been around for 50 years suddenly trade the business away for 20,000,000 in stock from some little unheard of U.S. company? Well, we all know that there is apparently a great deal of precious and other metal ores in the two BT&S 500,000 tonne tailings piles, as well, no doubt, in the in-ground assets.
Now suppose DACQ's angle in approaching BT&S was that DACQ was a U.S. mining company that was currently conducting research trials "to recover precious metals from...ore concentrates using new techniques to break complex ores." Ask yourself: if you were BT&S, mightn't you be interested?
Personally, I would LOVE to have Mr.Cox explain (1) WHERE DACQ's 35,000 tons of precious metals ore concentrates are located, (2) WHAT SUCCESS Century 2000 Corporation is having in its recovery of precious metals from the DACQ ore, and (3) WHAT PART (if any) that DACQ thinks Century 2000 Corporation's "proprietary method for recovering precious metals from concentrates" might play as to the BT&S Bolivian assets.
COMPARE FORM 10-k, page 1: "The number of shares outstanding of the Company's common stock as of September 31 [sic!], 1995 . . . 39,715,000" with page 11: "The Company, from time to time, has issued shares for services and in consideration of private placements to meet on-going operating expenses and capital expenditures."
COMMENT: I believe Mr. Cox recently was quoted as stating that there are around 60,000,000 shares outstanding. This over 15,000,000 more in one year, since last year there was the 39,715,000 plus the additional 5,000,000 issued to Senior Cordero for facilitating the sale of the BT&S assets to DACQ.
Form 10-K, page 7: "ITEM 4. Submission of Matters to a Vote of Security Holders. No matters were placed before the shareholders for a vote during the fiscal year ending September 30,1995."
COMMENT: I guess that's one statement that won't change in the FY 96 10-K either.
Form 10-K, page 8: "SHAREHOLDERS - The number of shareholders of record of the Company's common stock on July 10, 1996 is approximately 3,408."
COMMENT: Now we have some idea of how many of us there are!
Form 10-K, page 12: "Identification of certain employees. Fernando Pero, who is responsible for operations and development at the Company's Bolivian subsidiaries, is a key employee. His family owned and operated the same properties prior to their sale to Bolivian Tin and Silver in 1995."
COMMENT: I wonder if Senior Pero's telephone number is listed in the Oruro phone book? SUGGESTION: Perhaps we shareholders could start things off on the right foot by contacting Senior Pero -- whose family holds 20,000,000 DACQ shares plus the one million Class B Preferred -- and let him know that just how supportive us U.S. DACQ shareholders are of his efforts to make a success of the DACQ Bolivian assets. Perhaps he and his family would support the idea of having one of their members on the DACQ board as well as a representative of the U.S. shareholders. After all, our interests are identical: to increase shareholder value.
Well, by now I need to apologize for boring everyone to death -- even those who tired long before they got to here.
In closing, I'll bid a sincere good luck and godspeed to those trying to increase shareholder involvement and awareness, but I would also urge everyone to be mindful of two time-proven proverbs:
"You'll catch more flys with honey than with vinegar."
"Better is the rebuke of a friend than the kisses of an enemy."
Canoga Slim |
