Magellan Minerals Ltd MAGNF

Magellan CEO - Q&A

[godofgold]

I thought I would post my Q&A with CEO Alan, transparency is key here:

Please contact CEO Alan if you have any questions or doubts about any of the content here, he is very approachable and gives straightforward honest answers.

 

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Q: Was the company aware of David De Gouveia activities in 2008/2009? As you are well aware he has been charged by ASC, do you have any thoughts on this matter? (No such news was ever officially announced on MNM's behalf but all your shareholders are aware)

A: We knew David Gouveia but we had absolutely no knowledge of the alleged activities he was involved with. He was not known to us before he called us up in 2008 and started asking questions about the Company which happens all the time. We have collaborated fully with the ASC and we are not the subject of the ASC investigation.

 

Q: The recent news stated the financing with Global Royalty Corporation, has that been approved/closed?

A: We are working hard at closing the financing which was announced recently and minimizing dilution to our shareholders….these are very difficult times for junior resource companies with no cash flow

 

Q: It seems like everyday we were hitting a new 52 week low, I understand that the whole sector has been hit hard for a few months. What do you see forth coming that could bring back some interest into MNM?

A: We expect to commence the revised scoping study at Coringa next month which will likely take until October and then we will go forward with the feasibility study which will likely involved infill drill towards the end of this year and into next. We hope to Have the feas study at Coringa completed by mid-2013. At Cuiu Cuiu we are engaged in surface prospecting around the known bodies and getting some excellent surface results particularly from untested high grade veins and we are hoping for a limited drill program in this regard towards the end of the year. The other big potential catalyst which is beyond our control is that Eldorado expects to release the results of the feasibility study for its Tocantinzinho project during the middle of this year…..Cuiu Cuiu is adjacent to their project…..check out the latest April 2012 ppt on their website re their plans for Brazil which makes interesting reading

 

Q: As of today how much cash on hand does the company have? (before or after the recent financing announcement)

A: About $1.5M pre closing of royalty financing, $6.5M post-closing

 

Q: It's good to see that the insiders have been buying stocks on the open market and as you are well aware your stockholders see this also. A stronger showing of force and buying from the insiders would further signal your confidence in the company. Is buying stocks on the open market something that is encouraged among the management team?

A: We are not particularly wealthy guys and do what we can as we believe in this Company. As an aside this management team has made 3 grass roots gold discoveries in Brazil in the last 8 years (we found Toca before founding Magellan and we have found Cuiu and Coringa…..all from nothing……there is no other junior in Brazil that has that track record.

 

Q: Is the company currently drilling on any of the properties? Which properties will we be commencing drilling and when?

A: No – see comments above

 

Q: In this market promotion seems wasteful, but I'm wondering what kind of IR/promotion do we have or plan to have to increase new shareholder interest?

A: We have cut back on the IR side but Jennifer Duthie is working with us and focused on increasing our exposure. I am flying to Toronto tomorrow to meet with a number of investors and we have plans to go to NY and Montreal and attend the precious metals summit in Colorado in September

 

Further comment by Alan: "Prices today represent an incredible opportunity. Magellan is a company with 2 advanced gold deposits (currently containing 2.4Moz) that have excellent upside, a management team with a track record of grass roots gold discovery in Brazil that is second to none, and a shareholder base that includes Newmont, Kinross, AGF, RBC and CIBC, and a project that is next to Eldorado’s project with a construction decision due this year."

 

[StackinCheese]

Why does the previous post read like a pre-arranged interview or some sort of attempt at "random" posting.  It seems too arranged and obvious to me....

[godofgold]

hahaha.... stackincheese I'm sorry for sounding professional, we're not all hill billies...   Its not pre-arranged or random (if you could read a few posts back, I mention that I usually just read posts because of replies like yours but since the board was so quiet I thought I would post), have you ever heard of this thing called EMAIL? No? well it was invented somewhere in the 1970

[StackinCheese]

I am familiar with email and computers, did you know they have the internet on computers now??? Nowhere have I ever emailed, received a reply, received a forward, or ANY email that was that scripted and "professional" sounding as you call it.  It was like watching a light night talk show host interview a celebrity.....so obvious and scripted, nothing natural about it. 

[StackinCheese]

Hint hint, the punchline is "Magellan".  Step right up folks, all it takes is a mere 26.5 cents to own 1 share of this "next big thing".  OR you could just wait a couple weeks and get it for 20 cents.  I thought this management team found and brought to production actual gold producers??  That is an impossible dream for this stock. 

[godofgold]

StackinCheese it’s awfully obvious that you bought into MNM when it was over a dollar, I hear your pain. Don't whine about it, do something about it. Take advantage of your situation; sell all your shares so you could use the amount as tax loss @ end of year. Wait 30 days and as you believe this stock is going to be cheaper (in my opinion this is only short term), repurchase the shares

[kazaa]

Management bought shares recently and did not sell when the stock was high. Stop your whining StackinChess and sell your stock and buy again. Did you notice all juniors are down or do you think MNM is the only one? You are the Joke of the Year.  

[StackinCheese]

I have been buying and selling MNM for about 5 years, and my current average share price is 57 cents - but that is mostly due to the cheap buying in the last 6 months.  So ya, nice call godofgoof, over a dollar...HAHAHA.  What is your definition of "short term"??  This has been falling hard since early Dec. 2010. 

[StackinCheese]

Correction - that should read 4, not 5 years

[StackinCheese]

Here we go, another week of declining share price, and no progress on managements part to speak of.  When does it stop???

[Horsesmouth2U]

Who knows. This is one stock that my co-worker got wrong. This stock has now dropped twice from the $2.00 area down to .10cents the first time and now looking like it will get there a second time. I never spoke with management myself, however I know of 2 people that have. I was told that they would go at this hard and now I hear they are not drilling. In fact everything that I have heard is doggy

[StackinCheese]

I can't imagine any scenario that would see the share price of this company anywhere near $1 again, let alone $2.  If management was so confident in this stock, why aren't they backing up the truck and buying every share offering under 30 cents?  40 cents?  Heck, even 50 cents would be a dream at this point.  Clearly they are not confident either. 

[kazaa]

Hey Cheese Man, the fund managers are blowing out all their shares in every junior. These guys sold not one share when the stock was over a buck. Management is confident in their stock but the selling by the institutions is horrible and crushing this stock and every other junior out there. I bet if they could buy more they would. Maybe they have families and kids in college etc. They

[kazaa]

Obviously Horsemouth you are as stupid as Mr. Cheese.

[Horsesmouth2U]

KAZAA: You're the stupid one and a liar at that. You said, "These guys sold not one share when the stock was over a buck." Alan Carter sold 98,000 shares at $1.20\share on November 24th,2010. Alan Carter sold another 100,000 shares on December 10th, 2010 at $1.50\share. Other insiders sold as well. You also said, " You comments are just plain stupid."  Great

[TrueGold]

Holy moooolleee. These guys gave themselves another round of stock options. Wow I wish I could get rewarded for a terrible job. The stock drops from $1.90\share to .19 cents and management rewards themselves. What a bunch of garbage. What a joke that is. Lets give ourselves another 2.4 million options that we can sit on for 5 years and not have to lay out any money until we exercise. We deserve

[Rambo007]

Don't say you weren't warn

[kazaa]

Big deal idiot. Look at the value they have built. Alan Carter did not cause the junior market meltdown as you may think. Sell your 4000 shares and take your tax loss. Management has done a great job. The market stinks and it's not their fault idiot.  

[kazaa]

Why not take some options? You say a terrible job! Have you ever worked in a tropical environment? To blame management on the market is just dumb. I say this to management. Good job Alan Carter! The problem here are a bunch of idiot shareholders who believe your job is easy.    

[kazaa]

The options are well above the current price. What is wrong with that? "Separately, Magellan has granted stock options to directors, officers, employees and consultants of the company. The options entitle the holders to purchase 2,455,000 common shares in the capital stock of the company at a price of 50 cents per share. The options are exercisable until April 26, 2017, subject to

[StackinCheese]

Kazaa, Given the price action of this stock over the past 16 months, there is absolutely no way that you have made any money on this stock.  Add to that the fact that you are celebrating this (losing your money) that makes you a certifiable idiot.  If you like losing your money so much, just send me some in the mail so I can cover some losses on this horrible stock.

[Horsesmouth2U]

Listen to you. Do you not realize how stupid you come across. Look at the value Alan Carter et al have built. First off they got Coringa from Chapleau...nothing to do with Magellan. Secondly if there is such great value here why is the stock continually dropping. The market stinks for sure but like any company if you find something significant the market will recognize it. Never seen someone so

[kazaa]

Hey no one is making money. But I will not blame management on the junior market meltdown. I did take a tax loss here and I understand that the overall market has pushed down this stock, not managment. I sold in the mid 60 cent range, at a lost. Once the market turns around, this is the first stock to buy. If you are still holding stock, then you are a bigger idiot than I am.  

[Horsesmouth2U]

Now we have a moron that states he sold out at .60cents and is out of the stock. He saw management buying shares in the .40 and .30's but he is not in. He admits to losing money. Now the mystery. Why would someone in this boat come out and criticize everyone that is PO'd? WHY? This is not normal. You can bet your bottom dollar if the stock dropped to 5 cents (which it won't) he would

[kazaa]

I came on to this board because idiots like you are blaming management for the share price. You are attacking honest hard working people that are caught in a bad market. I sold not because of management but saw a downturn. On the sidelines still. Have you lost money here? Why are you PO'd at management? Is this the only stock you own?

[Horsesmouth2U]

Where am I BLAMING management?

[kazaa]

"I never spoke with management myself, however I know of 2 people that have. I was told that they would go at this hard and now I hear they are not drilling. In fact everything that I have heard is doggy poop. Spinning off a property by last year never happened. Non stop drilling.....BS Why are funds and\or people selling. F-all is going on. Maybe a few people walking around the property with

[Horsesmouth2U]

You know KAZAA you're a real sick puppy. You have an incredibly hard time realizing that the truth is simple the truth. There are no words in my post that is attacking management.  If the team at Magellan is 1.) not drilling; then they are not drilling. 2.) If they promised to continually drill and have now not drilled for 6 months then that is not the truth.  3.) If they said they

[ceosss]

Looks like some constructive debate going on here.  Glad I found this board. 

[kazaa]

Sounds like you think Alan Carter's job is easy. And blaming the management for the terrible market. If the funds aren't buying juniors, the market is going down. Six months ago the market was different and Magnellan had to change their short term objectives. Since management owes millions of shares, they are doing everything they can to protect Magnellan's

[kazaa]

Good company here and good guys. Some of the posters believe the Alan Carter is responsible for pushing down the entire market. I think this is a great company that will rebound. I am on the sidelines until I see the massive financings again. When, who knows but this is one of the firsts I buy.

[TrueGold]

KAZAA  - Where does Horse say anything about Alan Carter's job being easy or hard. Where is he blaming management for the terrible market. You really do have a hard time reading and understanding. And for someone that is no longer in this stock tells me you have way to much time on your hands. Question: Who does management owe millions of shares to?  This doesn't even make sense.

[ceosss]

"By the way I never seen a post where Horsesmouth2u says he sold any shares of MNM. In order to lose money you have to sell the shares Kazaa." This is completely untrue.  A loss is a loss, realized or not.  Carry on.   

[TrueGold]

Sorry CEOSSS. A person may find themselves in a loss position, but it does not become a loss until the person sells the stock. If you require clarification then I suggest you phone Revenue Canada. What happens when the stock jumps back above a persons ACB. What do you have now. According to you you had a loss, realized or not. Do you tell Revenue Canada hey this was a loss for the last 10 months

[ceosss]

Agree to disagree

[kazaa]

Owns. Owns. Sorry for the mistype. Big deal. Do you still have stock? I will probably buy your stock soon. Take the tax loss. I did in early December. Now ready to jump back in.      

[Horsesmouth2U]

Mistype my ar$$. The e is no where near the n. Nice try. It is blatantly obvious that grade 3 was the hardest 4 years of your life. Great, jump back in. Gives you a reason to be here rather than sucking up to management.

[kazaa]

Back in today. Sell your stock idiot and move on.