business question to the silver forum

Jungle callllllllllllllllllllllllll

Spannerrrrrrrrrrrrrrrrrrrrr Monkeyyyyyyyyyyyyyyyyyyyyyyyy

We neeeeeeedddddddddd yourrrrrrrrrrrr helppppppppppppppppp!!!!!!!!

REDBACK
 
jayisjay said:
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.
Click to expand...

Even before you put pics up ;)
I can ,with one phone call
1-identify your plant
2-backdoor you on the deal :o
3- Do a deal with the plant before you know what hits you
:D
Mining in any industry is a very cut throat business
If you haven't worked in the industry before ,I wouldn't stick your nose into it ;)

The mining industry eats newbies like you up everyday before breakfast
 
Further to Redbacks comments above that in which the basic fundamentals are covered as far as legal requirements go,sorry i cant help but to add a few new comments regarding what i believe is nothing but a scam,


point 1 you suggest that 4000 t of ore is producing hundreds of kilos of silver and gold, there is not a mining company on the planet that would not see this as extremely high grade ore (most gold mines view 30 grams per t of ore return as viable once established, some more and some less but 30 gpt is not a bad guide)and would not simply sell it to a third party unless they had deemed it economically not viable to process, if it is economically not prudent to process with $100's of millions of dollars worth of equipment then how is it viable for you to process it with $1.5 million of equipment?
$1.5 million in mining equipment gets you stuff all unless it is well past its used by date and will cost more in maintenance and breakdown time than its worth.
I have worked in both ends of the mining scale from small operators employing 5 ppl to multinationals employing 1000's the diesel bill to operate two moxys a digger a crusher and a loader alone is over $2000 per day and that is doing short haul circuits on day shift only and none of the plant runs a full shift due to fuel usage strategies.
What do you intend to do with the chemicals and run off of chemicals.
Water is from a well hey, the quantities of water required to run a wash type plant is in the mega liters per week, your well will soon run dry and you will have to relocate or shut down.
I could go on but i think you get the gist , what you are suggesting is so poorly thought out you are either extremely naive or simply attempting to part ppl from the money that they actually worked for so this is not the place for s**t like this.
 
What time slot with this program air on discovery channel? and how much of what you say on air will be scripted?
 
FYI
1. I am not a spammer nor a scammer.
2. My "one" friend who has a plant is helping me.
3. this is NOT a mining business all equipment needed are multiple backhoe's, dump trucks, and some other minor equipment.
4. I wrote the above at 3am and made a mistake about being 4000 tons monthly(I am new to this) that was my mistake it is substantially more production.
5. Build cost are low because they are gravity pools(low tech) and mostly concrete build out. Not much science to it.

I am American, but find the racial slurs offensive, I guess stupid me for wanting civility. People act like children. If you knew so much about the mining world you know this is a minor operation in that world and not a concern for major players. So if you actually have something to ask I will be responding. I am new to this but I am not stupid nor ignorant.


have a nice day.
 
jayisjay said:
FYI
1. I am not a spammer nor a scammer.
2. My "one" friend who has a plant is helping me.
3. this is NOT a mining business all equipment needed are multiple backhoe's, dump trucks, and some other minor equipment.
4. I wrote the above at 3am and made a mistake about being 4000 tons monthly(I am new to this) that was my mistake it is substantially more production.
5. Build cost are low because they are gravity pools(low tech) and mostly concrete build out. Not much science to it.

I am American, but find the racial slurs offensive, I guess stupid me for wanting civility. People act like children. If you knew so much about the mining world you know this is a minor operation in that world and not a concern for major players. So if you actually have something to ask I will be responding. I am new to this but I am not stupid nor ignorant.


have a nice day.
Click to expand...

I think you will find that if you provide more hard figures in the form of a prospectus you would get a better response.

Some natural questions how many tons are you going to process a day in input and waste?

How many tons are you assured that are already available to process?

What is the minimum number of grams per ton you are assured?

What is the capital cost to meet your target daily tonnage?

What is the operating cost per ton(the fact you downplay the massive cost of reliable plant equipment is disturbing. It is a massive cost, I'm no mining expert but know about heavy equipment capital and running costs)?

What is your source for plant machinery and operators?

Finally and most importantly which accountant has audited your business plan or are your willing to cover the cost of your business plan capital costs and overheads being audited for prospective investors (I'd ask the same if this was a book shop)?

Who's the financial controller and under what jurisdiction is the business operating, who's the majority shareholder?

No one wants unprocessed raw commodities as a return on a liquid cash investment.

If you are even half way serious (and anything involving old silver mines has had more scams attached than emails involving Nigerian royalty).People are rarely polite when it comes to schemes involving old silver mines for that reason. you need to be really willing to provide hard numbers and expect them to be examined left right and centre before people give you money, that's business and there is no point in being thin skinned. No one is asking you for money and your initial post insinuated you were shopping for people to give you money.

You may well be better off listening to some of the people who posted on this thread. There is an incredible knowledgebase on this site it gets quite pointed at times but that is imo a good thing. If you accidentally get involved in a business that is a scam you could loose more than your money and wind up doing time .


I'm familiar with a very similar proposition originating as far as I can remember in a Panama based business that has featured on this site previously.

I don't want shares in a Panamanian company and would not take kindly to that company promoting their story disguised as your OP.

So assuming you are not involved in a Panamanian/Bolivian 'scheme' (which I would personally never give money to), please help yourself and readers by answering some of the questions above.

It is difficult to understand why with an existing business that apparently has a wonderful profit margin why financing for expansion is unavailable. Interest rates are not high right now.

Honestly I think anyone on here proposing anything involving very high returns from old silver mines would get roasted irrespective of their nationality.

If you are therefore in any way serious you need to develop a thicker skin and if anything consider what your friend with political connections is proposing to you in light of what you learn answering hard questions.

If you are considering investing in a Panamanian/Bolivian 'scheme' based on silver processing please take a cold shower and thank this site for saving your money then get some new friends (with or without political connections).
 
whinfell said:
Are you connected with the Royal Silver Company?
Click to expand...

Thanks just saw your post and couldn't remember the name.

If this then you closed the thread quite nicely already.
 
Rad Dood said:
Can anyone confirm the ag% of the silver concentrate.(Most cons prior to refining is approx 26%)
Click to expand...

You'll have to see if he comes back. I'll assume whinfell nailed it with Royal Silver Company until he does.

For me it would be better value to burn the cash than give it to Royal Silver Company. Less hassle.
 
Thank you for every ones input. It helped me realize that offering in material was not that right way and just adds headache to the administrative side of things. It also help me see that quarterly dividend payments will be best way to go.

Thanks, that was what my question was about.

I will finish my business plan and present it to "qualified" investors in the USA (in USA qualified investors are people who make more that 200k a year and have a net worth of at least million) there are very strict rules here which I must follow.

To old soul, I now have all the answers to your questions which are necessary for the business plan but this is not the correct platform for my business presentation. Your right I need thicker skin for these forums, I was just caught off guard by the responses to a simple question. Thanks and have a great day everyone :)
 
You must log in or register to reply here.
Back
Top