It was busy, and people were generally upbeat. I talked to fewer companies this year, but my sense was that more of them were financed and moving ahead with their projects. Only one had truly disturbing news - they were dumped a few minutes ago.
As always, there was some desperation, and I heard a few tall tales as well.
One non-listed company expressed a preference to do all financing with hundreds of small shareholders rather the "Bay Street Boys" and those "Vancouver Promoters".
Hmmm....so rather than have a professional promoter raise tens of millions of dollars for an IPO, taking a 5% - 7% fee, this fellow would rather manage the expectations of hundreds of individual shareholders, and run this company like 50 Amish dudes at a barn raising. "Don't try to be cute! Just drill next to the old Gold mine, English!"
OK, maybe even he believes this tale, or maybe he has already approached the money men, and they said "not on your life!". I have their name. When they list, I'll be a believer.
Another told a tale of the $20 Million that lenders were lining up to give him for a mill to process Cobalt - they were just comparing terms. He had previously built a mill, and one should be up and running in less than a year.
All good, but then he mentioned that for the first three years the mill would process Gold-bearing ore from Quebec until the debt to build the mill had been paid off.
WTF?
Why build a mill to process Cobalt if you immediately use it to process Gold for three years? Hmm...maybe you're not ready to mine Cobalt?
And if many lenders just can't wait to lend $20 Million for this rock solid investment...well...why haven't they lent the money yet?
Maybe this is 100% legitimate. Two close friends are in this company. I'll pass on my concerns. After chatting with them, I may even buy some!
Then there were my companies.
One has excellent silver properties in Nevada, but they don't have access to a supply of water necessary for drilling. The issue of water access is subject to litigation, so they may just drill a water hole.
I talked to the IR lady. She was earnest, and I felt their pain. I was a litigator in a previous life, and know how long litigation can take. I have also been to Nevada - water is a tad hard to come by there even with a drill. As noted, I dumped the position this am.
Another of my companies had an empty booth. No displays...no literature available...no maps. They explained that Canada Customs does not work on Sundays, so they could not get their material in from Nevada. I noticed that everyone else, including companies from Africa, Chile and Mexico had their booths ready.
Here is the website for Canada Customs at Pearson International. You'll notice that they are open 24 hours a day, 7 days a week.
https://www.cbsa-asfc.gc.ca/do-rb/offices-bureaux/853-eng.html
I have a buddy back home who has a position in this particular company as well. I want to chat with him before dumping. If a management team can't set up a booth, how the hell can they run a mine?
I did manage to walk through Toronto, and to marvel at the changes since I moved to Ottawa in 1995.
The condos have sprouted like so many raised hands at a memorial for Kim Jong il...higher and higher, like their lives depended on it!
Does anyone in Toronto have a coffee maker at home? There is now a coffee shop on virtually every single street corner.
The money was swamping out the poverty for a while - Yonge Street was quickly being converted from head shops to condo heaven, but I have noticed that the grime, and no doubt the crime, is slowly creeping back in. You can't keep a bad man down for long!
Finally, I took the train.
Long ago, when I was in university, I would go to the "Choo-Choos" pub in the train station, as it was the only pub that was open on Sundays in Toronto. I have not had a drink in over two decades now, but I decided to take a stroll down what I thought would be something akin to Bad Memory Lane to see how the old, sad pub is doing. The pub is gone. Today, it is The Detox Market. How appropriate.
I saw old friends and family, and was glad to have done so...the primary reason for my trips!
Until next year!
One non-listed company expressed a preference to do all financing with hundreds of small shareholders rather the "Bay Street Boys" and those "Vancouver Promoters".
Hmmm....so rather than have a professional promoter raise tens of millions of dollars for an IPO, taking a 5% - 7% fee, this fellow would rather manage the expectations of hundreds of individual shareholders, and run this company like 50 Amish dudes at a barn raising. "Don't try to be cute! Just drill next to the old Gold mine, English!"
OK, maybe even he believes this tale, or maybe he has already approached the money men, and they said "not on your life!". I have their name. When they list, I'll be a believer.
Another told a tale of the $20 Million that lenders were lining up to give him for a mill to process Cobalt - they were just comparing terms. He had previously built a mill, and one should be up and running in less than a year.
All good, but then he mentioned that for the first three years the mill would process Gold-bearing ore from Quebec until the debt to build the mill had been paid off.
WTF?
Why build a mill to process Cobalt if you immediately use it to process Gold for three years? Hmm...maybe you're not ready to mine Cobalt?
And if many lenders just can't wait to lend $20 Million for this rock solid investment...well...why haven't they lent the money yet?
Maybe this is 100% legitimate. Two close friends are in this company. I'll pass on my concerns. After chatting with them, I may even buy some!
Then there were my companies.
One has excellent silver properties in Nevada, but they don't have access to a supply of water necessary for drilling. The issue of water access is subject to litigation, so they may just drill a water hole.
I talked to the IR lady. She was earnest, and I felt their pain. I was a litigator in a previous life, and know how long litigation can take. I have also been to Nevada - water is a tad hard to come by there even with a drill. As noted, I dumped the position this am.
Another of my companies had an empty booth. No displays...no literature available...no maps. They explained that Canada Customs does not work on Sundays, so they could not get their material in from Nevada. I noticed that everyone else, including companies from Africa, Chile and Mexico had their booths ready.
Here is the website for Canada Customs at Pearson International. You'll notice that they are open 24 hours a day, 7 days a week.
https://www.cbsa-asfc.gc.ca/do-rb/offices-bureaux/853-eng.html
I have a buddy back home who has a position in this particular company as well. I want to chat with him before dumping. If a management team can't set up a booth, how the hell can they run a mine?
I did manage to walk through Toronto, and to marvel at the changes since I moved to Ottawa in 1995.
The condos have sprouted like so many raised hands at a memorial for Kim Jong il...higher and higher, like their lives depended on it!
Does anyone in Toronto have a coffee maker at home? There is now a coffee shop on virtually every single street corner.
The money was swamping out the poverty for a while - Yonge Street was quickly being converted from head shops to condo heaven, but I have noticed that the grime, and no doubt the crime, is slowly creeping back in. You can't keep a bad man down for long!
Finally, I took the train.
Long ago, when I was in university, I would go to the "Choo-Choos" pub in the train station, as it was the only pub that was open on Sundays in Toronto. I have not had a drink in over two decades now, but I decided to take a stroll down what I thought would be something akin to Bad Memory Lane to see how the old, sad pub is doing. The pub is gone. Today, it is The Detox Market. How appropriate.
I saw old friends and family, and was glad to have done so...the primary reason for my trips!
Until next year!
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