Member Info for safetyman

There is no finer calling Kev.

Phwoar! I have thus far focussed my interest on the tungsten at la Parilla. However, you point out a major thingy there mate. So is there potential for a 16 fold, as compared to Thor, return if the FID for Régua comes out as you say. That’s bearing in mind it was $60 million to start Thor and we need $5 million for Régua?Seeings how Thor moved, then what could that be for us. I am just using glancing arithmetic on a fag packet, and I don’t smoke. Yer right though this could be whopping good even without la Parilla?

And... next question, what’s the revenue on 40,000 tons of dirty gravel at Régua?

So Kev, translating that to Essexish, that’s a million dollars a bang!

Now I ain’t a surveyor of any kind, but that last blasting at la Parilla was 20,000 m3. Now digging up dirt and making holes is something I have happened upon; (when looking, with others, to set up a company doing that in the far North of Britain, or Scotland as Kev likes to call it). Well anyway gravel and similar is nearly 2 tons of gravelly dirt, fag packet wise. So that’s nearly 40,000 tons of ore to process. So from that, someone with an ology could do sums and such to calculate that to revenue I reckon. I bet it’s a crackerjack loaf of dosh.
As an aside, the assets for the business I was involved with we’re negligible. Lots of kit and plant used is hire stuff as it has too much down time and sometimes training requirements for use to be worth retaining) e.g a hot box etc. Lots of costs though for accommodation, training and transport for crews, lots of licensing, environmental issues and ....... oh the locals around were not happy. No tangible assets that can be sold off in the event of failure, however, a financial agreement was achieved from a bank using a loan facility. The dig up stuff didn’t get sold on like at la Parilla, you didn’t always get paid, you had to reinstate after the digging and there’s competition for that work in those places; all rather unlike la Parilla- which now we have got this far looks like a walk in the park. Cusp my friends with great things all imho.

Blimey, the distraction is getting all over the shop. The bank crash of 2008 has little to do with due diligence on a current investment. My understanding is that it was the lack of it, bundled up mortgage portfolios and the decisions to start accepting financial derivatives as having an intrinsic value and giving them associated financial ratings( S&P started it I think).
As regards business plans there is often not a ‘Plan B’ , especially on engineering projects. However, there is a process of due diligence; in the UK even a small engineering project going through a procurement process would use insist of contractors with something like a CHAS or other accredited SSIP. Other requirements would relate to suppliers and provides meeting with certain ISO’s or similar compliance.The financing arrangement would insist on these as part the agreement to provide funds. There would be other caveats and associated requirements. There would also be consideration of targets, market stability and projected pay back periods. All this and more then enables a lender to decide if the risks are sufficiently mitigated. The finance then has some level of recognised risk exposure which effects things like loan rates. So you don’t see a start up miner with just dirt and a hole in the ground given loans at base rate. If a PlanB was a requirement, then there would be few projects and even less innovation. As an example,what was the Plan B for the Euro tunnel in case they got halfway and they had to stop due to a disaster of some kind?
It should be noted that the latest Spanish loan is at an extremely low rate, this would have not happened without due diligence; the conclusion has to be that those making the financial decision this must now be a low risk enterprise that will be able to pay back. QED.

Top man troaj. All the facts we need really.

Blimey oldskool. I thought it was from ‘I dream of genie’. Cracking show, some very wise phrases in that. One I still use when discussing use of resources is :”if we irrigate the desert we may have to empty an ocean”. I love slipping that in whenever I can, gives me a warm smile. If I can get away with an allegorical herring or kipper me day is made.

Base rate compared against a business loan, let a loan a start up miner is a ridiculous comparison. It has no validity as even being a reasonable arguement. Here is a fact; the Saturn 5 rocket that took Apollo to the moon used 1% of all energy used by man that year. There you go, a percentage without meaning and it’s a fact.
If you can arrange business rate loans at only twice base rate ( let’s call that 200%), you could make a packet, they would be trampling yer door down...... absurd.

Jaf , there you go again presenting against base rate. The comparison for loans should be on a like for like basis. A valid comparison would be against other loans made to junior miners, pre plant installation. If you maintain the base rate comparison it is simply not valid. I really am uneducated oaf( vocational skills aside). Apples with apples, oranges with oranges. Taking figures out of context, and date I say, using percentages to amplify the misrepresentation with the thousand for impact imho.
I have, previously, taken a second look or considered your posts, this is poor by your previous standards. This is intentional
misrepresentation in my opinion and I find this argument pointless. I am no academic, but in this I am certain.

And not just a canny crop of coriander it seems. Yer a canny lad Bob, we should be able to harvest here soon. Stay well.

I don’t post to create balance. I post what I think. Sometimes I post as a way of communicating with fellow investors, that can take various forms. One thing I dont do, is to go on BBs I do not have any investment with to create balance or anything else.
Jaf, I should also say that I often do not agree with you: your postings seem to make attempts at reasoning although you are no longer invested. I do consider them.as a view is fair enough I suppose. However, I noticed you allude to having a Bsc in Economics- which makes your posting about our interest rate on our loan being in excess of 1000% above rate as shameful. Our interest rate is very favourable for a mining start and no one gets base rate for that type of business loan. You are too clever and, it seems, knowledgable, to post that rubbish and not know it as completely and entirely misrepresenting facts. Deliberately vexatious imho and shameful. The loan is actually rather good and we now have our plant set up and within cost. If you really are about balance then you would not make what I consider such a silly argument.

Jags, that putting down of letters after yer signing name thing was an amusing touch. As a qualified Oligist I too will share.
Safetyman, Member of the RI.

Oldskool. I would agree that the market needs confidence, and in essence that is demonstrable income. Not many traders etc are going to be excited by s lot of the information we have procured. All that is seen on the surface is not as good as what lays beneath. Much like a mine really. The market would be wary of Wlfe and perhaps Orm. However, the reality is far better than the superficial perception imho. MM was discussing issues around wlfe and OMR etc.we are definitely geared up to not have the same impediments. It really is looking solid going forward. Historically there were delays and placings which give negative signals- the reality is much better. At some point the good stuff becomes demonstrable, at that point the narrative becomes positive. I think it’s soon imho.

Jaf, I would argue you put your money into my money ( or where my mouth is) by selling and depressing the SP ( I trust supply, demand, price per unit is an acceptable relationship to accept)- I then bought in at a more lowerer price. So thanks.

Jeez, now yer doing the percentage of the percentage game as opposed to the adding up game. Games clearly.

The empty space between particles, electrons, neutrons, atoms etc is huge. The particles are minuscule in comparison. Most everything we see as matter is just huge gaps of nothing. So there’s no point in investing in mines, yer just for the most part digging up empty space, even the dirt is not solid. It’s all pointless. No way to live yer life though.

Yep Troajan, that’s what I do. I keep parity with MM. I just reckon he knows more about this stuff than me.

Who ever got a business loan on mining venture at bank base rate? There is no point even considering that as a reasoned argument.

Inki. The gold question got raised at the AGM. MM’s comments,demeanour,
and body language didn’t really do anything to make me think he was going to sell Sao martini. As I recall things it was about thinking about doing what is best at the time. We will have to do some trenching at some point. MM used use telephone to demonstrate the lay of the deposit being horizontal or otherwise. The geologists all keep bashing each other up evidently, but are to be locked in a room until they come out with the correct information. My personal guess is that the deposit is hormonal, up and down and vertical- buts that just me.