Re: Sent questions from a good friend of mine about SFMI
in response to
by
posted on
Jan 02, 2011 01:45PM
(Edit this Message from the "Fast Facts" Section)
Garick- Most of these topics have been rehashed many times over.
1. As far as I know, no convictions resulted. Maybe fines? I'd have to look it up. I certainly don't consider it a positive. From what I have seen and heard, though, PQ is straight up. His previous company, Dicut, failed when they had the rug pulled out from under them on a contract they were counting one. But PQ made sure shareholders in Dicut got shares in SFMI, even though he didn't have to. The people I have been in contact with who were in Dicut will vouch for PQ. And besides, it's ridiculous to think that someone would risk jail to run SFMI as a scam for a few millions when there are billions to be made legitimately. While the family connections are a bit iffy, it's at least open. I don't mind PQ et al. getting rich as long as we all do too.
2. RK has been consistent in telling inquirers that the smelter is backed up, and we will get results as soon as SFMI does. Nothing more to say.
3. One of the reasons they only sent the minimum 500 lbs to the smelter was as a test batch to see how things went. They may be waiting for the results to send more, they may have already sent more, or if they don't like the results or the delay they may be working out an arrangement with another smelter.
4. I don't know that company. From what I hear, it was a large investor who insisted on financing the report. SFMI wasn't happy, but did it to please the investor.
5. I assume by "each other" you are referring to SFMI/GHDC? It was set up that way for a purpose. GHDC was to be private, a holding company that owned the claims and collected royalties. They may expand beyond the present claims and area. SFMI was the public company that leased the claims and did the mining. PQ, whose stake is mostly in GHDC, was counting on hiring mining people to run SFMI after they got to production, and getting out and just collecting royalties. He was convinced to take GHDC public, though. So depending on which company you think will benefit most from the arrangement, you can invest in either one. Or, like many of us here, in both.
6. PQ has been in a lot of businesses, not all successful. Do some investigation on how many businesses make it. Looks to me like PQ finally has his big winner.
I've said before that SFMI could be clearer and more transparent in their public statements. But they are still better than many startups. And the real test is in what they have accomplished. So far they have done everything they said they would do- and in remarkably short time. Find another miner who has gone from startup to production in under three years. And I'm sure you have a good idea what kinds of resources there are on and in War Eagle Mountain. All stocks like SFMI carry risks. But SFMI as far as I'm concerned has taken care of 99% of the risks you find in these kinds of stocks. At this point it seems to me to be about as sure a thing as you can find with this much potential.
All my opinions, of course.