Hello all, I am new to the forum and fairly new to silver (just a few years in buying). My expertise is construction and business management. Recently I was shown full operations and explained and shown a large plant that takes old mine dirt and then processes it to pull out remaining silver and gold. So I am looking to open a higher volume plant that takes assayed old silver/gold mine spill and processing for mostly silver. It is a very good business with steady income purely based on how many tons the plant can process monthly, volume and assayed raw material directly equates to how much silver concentrate is generated. I am looking to create equity shares in the business to fund the building/equipment and startup cost of the plant. In return the company will offer its investors between 12% to 26% yearly return based on volume, quality of raw material, and market pricing. The dividends will paid monthly at a rate between .01 to .02xx My question to the forum is: as silver investors would you prefer your dividends be paid as currency or as silver/gold concentrate? I really appreciate your feedback.
Cash for me. I think there was another refiner that if you took payment in PM's, they'd pay slightly more than what the cash value would be.
I was initially going to say cash, however, I would be tempted to use the silver concentrate to make my own coins and on sell them. Thus creating another business opportunity from my primary investment in the mine.
There's some good thinking. Though the cost of delivering the silver may be an inhibitive factor. Jay, where's this plant located?
I don't think this is really relevant. I mean, ask whatever you want, but I don't think a mining background is particularly necessary for this operation. It's purely processing waste from previous mining efforts to extract the small amounts left over; it is not really mining any raw material, just reprocessing the scraps.
I second that ... if there were that much metal left in the waste over after the first miner got his hands on the material, then they'd just do what you're about to do and cut you out. Might be an idea to go over your numbers once more.
My thoughts exactly, hope Jay comes back and explain more. But to answer that question, I will choose silver simply because I want something more 'solid' than fiat currency.
It can definitely be the case that very old mines have some serious material left over in their tailings because they simply didn't have the procedures we do today, but I find it quite high for that level to be there. I guess if great procedures were followed keeping costs down then it's a solid maybe for it to be possible. Wondering whether the land is already owned by someone not willing to mine it? What is the current state of the property: owned by a company, farm, private?
From the paragraph , sound like there already a location. What are the proposal start up costing here Jay? Are there any permits for the tenancy? You may need a team of several expertise in the field. What are the % metals , that left over from the scrap piles? I am sure you already done your homework by now. Please care to explain further.
Hi everyone, I did not intend to for investors on this forum. I just wanted to see what the tendency was for payment preference to see what would make a good presentation if I decided to go the investor route vs just getting a business loan. I also apologize that I did not realize this was an Australian forum but I will go ahead and explain the best I can because I am getting several private messages and comments and figure this will save a lot of time and answers. If there some of you who are interested in investing just let me know and as we get closer I send information or have the attorney contact you. 1. I am basing my numbers and business model on my friend's plant who has been operating for 4 years processing 4000 tons per month. His plant produces hundreds of kilos per month in silver and gold concentrate and it takes out the mercury that was in the raw material as well. His profit margin has been solid from day one. 2. This is not a small scale operation, this will be a good size plant that will be built, it will process 8,000 tons per month. This design is a efficient proven plant. 3. The material comes from mines that are 50-100+ years old- so rich raw material, we do not buy because we think its good, everything is surveyed and assayed before purchase and we have monitors to make sure what is payed for is what is shipped is received. 4. There are millions of tons, so raw material is plenty for probably more years then I will be alive 5. I will not give the location because that is confidential at the moment but will I can say it is in the Americas. 6. The margin is very strong because of several factors: Volume, VERY cheap labor, water is from well (no water bill- just petrol for pump), high grade raw material. Low construction costs as this is my expertise and low labor costs. 7. My friend is allowing me to replicate the plant design for free only expanding the extraction pools to accommodate more material thus huge savings from designing from scratch. 8. My friend is a partner/consultant for obvious reasons 9. My friend/his family are very well connected politically so permitting process will be expedited and has been done before. 10. What I did learn so far from comments has been good: I think shipping concentrate to individual investors will be very expensive, as well as monthly wires of dividend. I think payment may be done on a corporate quarterly basis instead. But I have not ruled out completely raw material (but I think the proper way will be have the member of the holding corporation(the investors/stock holders) vote on how to handle the raw material if that was the way they prefer to receive their dividends. I imagine as a group they could have it refined or whatever they vote to do. Also if silver was chosen by the corporate members then they would get actually a better return because the discount that is given to buyers of raw material would go to the group. 11. I do not have to be a miner because this is not a mining business. This is a lixiviation process business. There is an on staff engineer that monitors the process. There is a general manager that handles the staff and work flow. Again, I must reiterate how inexpensive labor is. 12. We have been offered two locations for the new plant. One has millions of tons of medium grade spills on the land thus reducing cost of transport but slightly lower yields because of grade. Second site is centralized to accommodate receiving material from a wider radius with reasonable shipping cost. 13. we will need 1.5 million for the buildout and used heavy equipment. 500k for raw material to start and operating starting cost. But the plant will produce income from the first day it is online. If we go with investors then there are no interest payments that need servicing. 14. we will ask for an 8-12 month grace period while the plant is built. 15. Of course once completed and operational all investors are welcome to the plant for a tour. if I think of other things to write I will post them later. Due to time difference, its very late here and I will say good night for now. I hope this helps. PS I will also be putting photos of my friends plant later.
Id like to see so much like *An environmental impact study and approval *Your agreement with the relevant authorities *Your friends reason for not bank rolling the entire venture with the solid from day one profits *The tax implications as mentioned of paying dividends in a fluctuating commodity instead of a simple cash payment would add unnecessary headaches for your accounting firm. As your expertise is in business management why make things harder. *If you have no mining experience and come here with Noob questions and no clue of mining your going to get fcked. *Good luck communicating and getting on with the engineer if your this green he's going to Black ball you *When you say labour is cheap i assume third world exploitation is in order This below is pure nonsense,you haven't got a clue 10. What I did learn so far from comments has been good: I think shipping concentrate to individual investors will be very expensive, as well as monthly wires of dividend. I think payment may be done on a corporate quarterly basis instead. But I have not ruled out completely raw material (but I think the proper way will be have the member of the holding corporation(the investors/stock holders) vote on how to handle the raw material if that was the way they prefer to receive their dividends. I imagine as a group they could have it refined or whatever they vote to do. Also if silver was chosen by the corporate members then they would get actually a better return because the discount that is given to buyers of raw material would go to the group. Then this,i honestly i am lost where to start Please let me know what offshore account your investors money will be held in it just makes the investigation process that much simpler. Yes you hit an Aussie site and i call good old fashioned Aussie Bullshit on all of it 12. We have been offered two locations for the new plant. One has millions of tons of medium grade spills on the land thus reducing cost of transport but slightly lower yields because of grade. Second site is centralized to accommodate receiving material from a wider radius with reasonable shipping cost. 13. we will need 1.5 million for the buildout and used heavy equipment. 500k for raw material to start and operating starting cost. But the plant will produce income from the first day it is online. If we go with investors then there are no interest payments that need servicing. 14. we will ask for an 8-12 month grace period while the plant is built. 15. Of course once completed and operational all investors are welcome to the plant for a tour. if I think of other things to write I will post them later. Due to time difference, its very late here and I will say good night for now. I hope this helps. PS I will also be putting photos of my friends plant later. REDBACK out
