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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: ShoppinTheNet who wrote (13793)	6/22/1998 11:12:00 PM
From: Carlo	Respond to of 20681

Let's sell the Venezuelan properties instead of diluting Naxos more with more PP's every time the drill bill shows up.

To: ShoppinTheNet who wrote (13793)	6/23/1998 3:01:00 AM
From: Larry Brubaker	Respond to of 20681

Never heard of a company folding revenues into costs before.

To: ShoppinTheNet who wrote (13793)	6/23/1998 8:44:00 AM
From: Henry Volquardsen	Respond to of 20681

In your experience is this type of reporting (hiding the revenues in with the costs) normal or would it have been better to have simply stated the revenue and costs seperatly? I wouldn't characterize it as hiding. I suspect the accountants decided the revenues at that stage were small enough that they were immaterial and didn't need to be broken out seperately. Since the accountants signed off on the report I am assuming this practice conformed with GAAP. That said I always prefer more specific information and would have liked to have seen it broken out. But it is not that big a deal to me and I don't consider it any sort of smoking gun. Well looks like we got Norton out of there just in time! Norton was responsible for bringing the Venezuelan operation to the point where it is now beginning to become cash flow positive. If he were still available to focus full time on that project I suspect he could increase profitability. What is the value to naxos in retaining the ownership of (the Venezuelan operation). That is a question that I can't answer. What I will say is that it has been my experience in dealing with small companies that the most critical issue is the shortage of competent professionals to deal with all the issues at hand. This is often a bigger problem than funding. It is important that a company focus this limited manpower resource on the most important issues and not allow them to become distracted with non-essential projects. In the case of Naxos, FL is the important issue and Venezuela is a distraction. Norton et al should focus full attention on FL. Easy for me to say since that is what they appear to be doing. If FL hits big Venezuela will be an afterthought. So the obvious thing would be to say sell Venezuela. However I don't know enough about the situation to say if this is practical. Are there any buyers? Can we get our money out if we do sell? Venezuela does not have unrestricted movement of capital. If we can get a good price by all means sell. If not, it is not a cash drain on Naxos any longer and I see no reason not to hold onto it until we can either sell it or focus the resources on more fully exploiting it. Henry