RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: things Ok. I'm going to take one last crack at this.
Try to set asid your positive bias for Dynasty for a minute and imagine you'd never hear of it. Like Switzerland, attempt neutrality.
So here goes:
A guy you know starts telling you about Dynasty. He's talking it up pretty good. Says it's the next big thing. Cheap too at this price. You being always on the lookout for a new investment start asking some questions.
You-Where is it?....
Guy-Ecuador
You-Oh, well that's not so good. Are they in production?
Guy- Sort of.
You- What do you mean, sort of?
Guy-Well they're producing enough to pay the bills but they're not at full commercial production yet.
You-How come?
Guy- Well no one really knows actually. It could be a gravity concentrator they decided they needed, or it could be that the declines are not complete, or the plant isn't capable, but most people think it's because they don't have a contract with the government yet.
You- What do you mean "most people think"? What does the company say?
Guy. Well they're not really saying anything.
You- Why not?
Guy-No one really knows.
You-Hmmmmm.Ok what's that contract thing all about?
Guy- They have to sign a tax deal with the government that sets rates etc.
You-Oh ya I remember hearing something abou that. Didn't Kinross sign one of those? So when is that supposed to get done?
Guy- Well Kinross did have an agreement at first but then wanted to renegotiate as the rates were too high. So no one really knows when Dynasty will sign. Could be another year.
You-Oh so the tax rate is pretty bad huh?
Guy- Ya but there's a rumor that the govt is going to introduce an amendment to the mining act giving small miners like Dynasty a real nice tax break.
You-When's that going to happen?
Guy-Well no one really knows. It was supposed to have been introduced by last month but nothing so far.
You-Oh. Well what about that other stuff, the concentrator, and declines etc. Will they go into full production when those are completed?
Guy- We don't know.They're not saying.
You-What do you mean they're not saying? How can they not say?
Guy- I dunno. They're just not saying.
You- Well has anyone asked them?
Guy-Ya some guy keeps asking Dynasty questions and bugging them to answer him.
You- So what does the guy say Dynasty tells him?
Guy-Well nothing. They refuse to answer him.
You-Hmmmm.
Guy- Ya but he filed a complaint against them. That's why they won't answer his questions now.
You-Why did he file the complaint?
Guy-Because Dynasty got a court order to shut down their processing plant sometime in 2011 but didn't mention it until August in an MD&A. He emailed Dynasty and asked them when exactly they got the court order.
You-So what did Dynasty say?
Guy-Nothing, they wouldn't tell him.
You- Why not? A court order must be public record?
Guy-Ya. I dunno.
You- OK, so he filed the complaint because Dynasty wouldn't answer a question and now Dynasty won't communicate with him at all because they're mad at him? Sounds a bit unprofessional.
Guy-Well he deserved it. He asks too many questions. Most of us don't care what the answers are anyway.
You- How could you not care? Don't you want to know what's going on?
What other questions did Dynasty refuse to anwer? Were they proprietary or stuff he had no right knowing?
Guy-Well ya it'd be nice to know what's going on but what can you do?
His other questions were about the concentrator and asking about timelines. That kinda stuff.
You-Sounds reasonable enough. Be nice to know some of that stuff wouldn't it?
Guy- Ya but we really trust Dynasty so we don't mind if they don't answer.
You- OK so what else have they got going on down there?
Guy- They've got a couple of other good looking properties down there that they're still exploring.
You- Great so what are they finding?
Guy- Well they haven't actually been doing any active exploring for a year or so but when they did it was looking good.
You-So what happened to the exploring? Why did they stop?
Guy- Well no one really knows.
You- Ok so when are they going to start again?
Guy- They don't say exactly.
You- Oh.
Guy- So, sounds pretty great eh?
You-I think I'll take a pass on this one.
So, still think it's me keeping the price down?