which is all to the good. But like bigputz says, "Clay Report, please" I'm still going to maintain that the contract mining operations which brought in nearly $650K per month in 2007 ($150K in 2008) was, and for current shareholders will prove to be, a better way to finance the preliminary work on Dragon Mine than selling shares. And the contract mining was Jacobsen's baby and likely a source of what became a game-changing dispute with ALMI.
While Jake and his team were there and continuing through Mr. Zeitoun's tenure post 2007 bad news I told you that Taft's group has dumped millions in. Below is from the latest revised 10K:
Stock Purchase Transactions
David A. Taft, a director, is the president of IBS, Massachusetts limited liability company, whose principal business is investing in securities. IBS is the general partner of the IBS Turnaround Fund (QP) is a Massachusetts limited partnership and IBS Turnaround Fund (LP),is a Massachusetts limited partnership. Set forth below are purchases of Common Stock from the Company by the funds since January 1, 2008:
Date of Purchase
IBS Turnaround Fund (QP)
IBS Turnaround Fund (LP)
Price Per Share
May 23, 2008
413,262 170,071 $ 0.60
June 27, 2008
1,538,685 461,315 $ 0.50
September 23, 2008
1,019,265 680,735 $ 0.50
The closing market prices on the purchase dates were $0.63, $0.62, and $0.50 per share, respectively. Mr. Taft was not a director at the time of the transactions.
PIK Note Transactions
Beginning on December 30, 2008, the Company has sold $3,850,000 of 10% PIK Election Convertible Notes due December 15, 2018 (“PIK Notes”) in four tranches. The notes varied only as to the conversion price, which in each case was at or above the market price on the date of sale. The note is convertible into shares of Company common stock at the conversion price per share at any time after the Company has authorized sufficient shares to convey such amounts outstanding into common stock. The amount outstanding will be mandatorily converted into common stock at the conversion price per share when (i) Company has authorized a sufficient number of shares to convert amounts outstanding under all of the 10% PIK Election Convertible Notes into common stock, (ii) the average market price for the common stock is in excess of the conversion price and (iii) either (a) the Company has filed and caused to become effective a registration statement for the resale of the number of shares of common stock into which the outstanding amount of the note is convertible , or (b) such shares are resalable under Rule 144. Interest on notes of such series may be paid by issuance of additional notes, by increasing the principal amounts under such notes, or in cash. Interest payable on such note through June 15, 2009 has been paid by the issuance of additional PIK Notes.
Unless mgt. is not telling the truth, I believe they are confident that they have clay and are sending samples to potential customers. If you would check some past and current sources you would be comfortable that there is clay and eventually we will have the ability to process or send it to a outside processing plant and then sell the processed clay.
Below is from the restated 10K for 2007 and 2006. Even though mining showed operational profits in 2007 and 2006 look at the bottom line losses of over $2 mill in 2007 and over $1 mill in 2006 as "Jake" must of had lots of overhead. To me, if you are going to be losing money and most of us are not here because of there mining capabilities, then why not shut it down if your losing money bottom line anyway? If these guys want to fund operations for Dragon through IBS paying the bills and it costs a Million plus a year to do so, I feel that its a push. The timber never showed much bottom line either.
My views good luck to all
For the year ended
$ 7,731,081 $ 3,800,104
COST OF SALES:
Total Cost of Sales
OPERATING (INCOME) EXPENSES:
Exploration & development costs
Mining production costs
General & administrative
Disposition of land and equipment
(115,497 ) - 0 -
Loss on abandonment of equipment
44,406 - 0 -
Total Operating Expenses
Net Operating Loss
(2,199,286 ) (2,349,009 )
OTHER INCOME (EXPENSE):
(20,744 ) (20,075 )
Gain on revaluation of stock awards
646,000 - 0 -
Realized loss on securities available for sale
(414 ) (39,219 )
- 0 - 250,000
(179,145 ) - 0 -
Total Other Income (Expenses)
Loss Before Income Taxes
(1,681,716 ) (2,110,673 )
Provision (Benefit) for Income Taxes
- 0 - - 0 -
- 0 - (510 )
$ (1,681,716 ) $ (2,111,183 )
Net Loss Per Share (Basic and Diluted)
$ (0.03 ) $ (0.04 )
Weighted Average Shares Outstanding
The accompanying notes are an integral part of these consolidated financial statements.
The stock offerings have been private financing raised by the company from Taft's group. Why be weary of that? Please understand that I am not talking about the meal money here, speculating that Taft's fund has dumped so much into Atlas, settling a lawsuit by forcing Navigator's Insurance proceedes are reasons enough for me to speculate a bit of cash when other's are dumping in millions post 2007 bad news leading to the class action. If Zeitoun's people, who are being paid by Taft's fund basically, downsize to keep costs at low cash burn rate until the report is used to get sales, that is my speculation. They have more at risk than I do. my views
I suggest you study (if you desire this stock at some entry point), the concept of writing off millions of dollars that this Taft guy has pumped into this company and during this time Jake and company were cleaned out and he has agreed to give back over 3 mill shares in settlement. People don't throw that type of money around looking for a writeoff in a recession. I still think they know something we don't and this is why they bought on all the bad news from the Jake days.
My views, don't bet with the meal money... Regards
I've held this stock for an extended period and basically was comfortable when they had the contract mining business that actually produced revenues. Now we have to hold our investment by crossing our fingers that the clay exists in sufficient quantities and quality to make it worthwhile. To me that went from a investment to a speculation. I'll wait for the "report" and then cheer how smart I am or quietly put my tail between my legs and wander off.