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Gold/Mining/Energy : Canmine resources -- Ignore unavailable to you. Want to Upgrade?

To: dave brown who wrote (1751)	8/22/1999 3:53:00 PM
From: Marshhawk	Read Replies (1) \| Respond to of 2769

Ok, lets look at the expenses: Advertising and promotion 238,907 Amortization 69,403 Consulting, finders fees, 605,367 subcontract and wages Conventions and seminars 65,372 Legal and audit 134,966 Mgt. fees 158,000 Office and general 276,654 Shareholder Information 71,668 Transfer agents and financing 46,950 Travel and vehicle 118,753 Total 1.786 mil Ok, amortization straightforward. Conventions and seminars seems in the right ball park (What does it cost to have a booth at PDAC and a hospitality suite and put 3 people up? Legal and audit, say at cost of $125 per hour, that's 1000 hours. Who knows? Mgt fees of 158 k I think is the salary for Ted, Eric, Bill and the IR guys, so definitely within bounds. Shareholder info: annual report, IR guys overhead, annual meeting 71k. Seems reasonable but they could just buy a telephone answering machine that says everything is fine, just buy for less. Transfer agent fees and travel and vehicle also seem reasonable to me. So the big question would seem to be advertising and promotion at 238 k and Consulting, finders fees, subcontract and wages at 605 k. Let's take the second first. They have an underground property at Werner, a mill at Maskwa. I assume you do not leave these to rot but have a skeleton crew for maintenance. If any work is being done in preparation of mining, I would assume that goes to subcontractors and I think in Jan-March of 98 they were drilling at BINCO, weren't they? I think Bill is paid extra when he is on a project in the bush, but I don't know much about who their consultants are. Finders fees are beyond me. As far as I know, prior to Groome, CMR raised 22 mil in capital in 8 years or about 2.75 mil per year. If that cost them 238k/pa in advertising and promotion is that excessive? Maybe you can fill us in on your list of juniors with lower expenses, and perhaps you can include a summary of where they are in regards to production, mills and refineries. The numbers as reported, of course, have been both vetted by an auditor and reported to Revenue Canada and I assume the TSE. Doesn't look to me that there is enough money sloshing around to risk a felony rap for misappropriation, but perhaps you and I have different conclusions. My read on the Preston article is not that they want a back up system to provide higher temperatures, but rather that they want a backup system because the primary system doesn't work,e.g. "down time recently experienced as a consequence of interruptions to steam supply due to boiler malfunction." Dave, why do you think that "analyst and mining heads" bought into the laterite story in the first place. Quentin Woods of Deutshe Bank was the only one to raise any questions and his were financially oriented, not procedurally. Everybody, the US funds, London analysts, end users lined up and bought the crap about Ni for free. Hate to be the sole doubting Thomas, but my guess is that VB at under a buck (presumably production cost and doesn't include amortization of 4.3 Bil) is another pipe dream.