The story26 Jun 2023 17:38
I heard a story
One man owns a piece of land in a bad place that many decades ago used to have ‘rough neck’ small scale mining in search of gold.
All the easy to reach, easy to find pieces of gold have gone.
He has a mate who runs a company where they can get plenty of money from mugs who don’t know any better.
They decide to work together to get the mugs from his company to pay to explore the land just in case there is any gold left over that wasn’t found decades ago.
His mate tells the mugs that not to worry, years ago there were some high grades of gold using very selective data when the reality is some what different, that here is other data about the bad place where the land is that he has chosen to ignore.
He tells the mugs not to worry as if it’s no good he won’t buy the land but we will hand over all the data he has accumulated at their cost to his mate and pay him a small sum every 6 months for doing it!.
And even if they find anything worthwhile, just try actually doing anything with it ( it’s in a bad place) you will need to pay just as much in bribes to set up a proper mine and operate it, before you even think about something as trivial as making a profit.
He tells the mugs they will spend a lot of money in the investigation , but it’s okay we have money to spend.
The mugs comfort themselves that it’s not all the money and there is still other projects that have been disasters so far, they just might turn a profit.
The mugs don’t allow themselves to get disheartened the company has failed for years to ever find anything meaningful let alone actually make any money all while the man’s mate gave himself a big pay rise.
But not to worry the mugs assure themselves it will be early stage cash generative when the reality is it will likely never be cash generative, it’s in a bad place after all, none of the major industry players bother with this bad place for good reason.
Then the mugs reassure themselves it’s the fellow investors fault for not being positive about losing money.
But those of a more critical mind have worked in and understand drilling and mining, they know you don’t pre agree to sell good gold plots for $4m.
But none of the mugs want to consider the pre arranged price, the reality of this ever becoming a mine, the obvious conclusion they are going to pay to explore and develop someone else’s plots, who owns the plots and what is the history of ownership, who has neighbouring plots and their links to the mates.
These questions are too difficult at this time.
The mugs instead keep up their belief if they speak positively of the company and defend the message board from more savvy investors they might save heir investment.
So the man and his mate pull it off again, they are successful, they rinse the mugs and keep feeding the mugs scraps who are excited about nothing.
The end and it really is the end.
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