spending moneyI took a look on Doratos Homepage and checked the latest 9 month report.
This is what I found:
Exploration advances 2009 1,055,3672008 421,447
Stock-based compensation 2009 922,048 20081,705,105
Investor relations ( 2009 366,687 2008217,870
Consulting fees 2009 1,153,321 20081,844,251
For each Dollar spent on exploration they frittered away
87 Cents for Stock-based compensation
34 Cents for IR
109 Cents for consultants
This adds to 2,32$ for each Dollar spent on exploration
Now the same vor 2008 2008 ( first 9 months) it´s still getting more crazy
For each Dollar spent on exploration they frittered away
404 Cents for Stock-based compensation
52 Cents for IR
437 Cents for consultants
This adds to 8.93$ for each Dollar spent on exploration
the consulting fees seem to flow in a circle in order to feed the members of the Cardero family
RELATED PARTY TRANSACTIONS
During the nine months ended October 31, 2009, the Company entered intothe following transactions with related
parties:
a) Paid or accrued consulting fees of $189,800 (2008 - $92,500) tocompanies related to directors, not including
stock-based compensation.
b) Paid or accrued consulting fees of $58,000 (2008 - $6,000) to anofficer and directors.
c) Paid or accrued exploration expenditures of $200,206 (2008 -$469,628), office and administration expenses of
$63,550 (2008 - $30,062), consulting expenses of $nil (2008 -$61,796),travel expenses of $41,456 (2008 -
$62,296), property investigation of $5,850 (2008 - $nil), regulatory feeof $3,950 (2008 - $nil), leasehold
improvement of $nil (2008 - $17,061) and investor relation expenses of$3,825 (2008 - $3,730) to two
companies with officers in common.
d) Due to related parties of $25,490 (January 31, 2009- $187,306) isowed to a company with common officers for
reimbursement of consulting, investor relations and deferred explorationcosts. The amounts due to related
parties are unsecured and without interest or stated terms of repayment.
These transactions are in the normal course of operations and aremeasured at the exchange amount, which is
the amount of consideration established and agreed to by the relatedparties except that the loan transaction
mentioned below (e) would not have been in the normal course of theCompany’s operations.
e) Amounts due from related parties of $nil (January 31, 2009 -$979,552) was comprised of a loan to Trevali
Resources Corp. (“Trevali”), a company with two common directors andofficers. This loan was secured under
a promissory note and by certain mining equipment owned by the Trevali’sPeruvian subsidiary and bears
interest at Libor plus 5% per annum. On July 31, 2009, this amount andaccrued interest of $37,712 were repaid
by Trevali. In addition, an amount of $nil (January 31, 2009 - $12,353)was owing from another company with
common officers.
I don´t know a single successfull explorer spending between a third and a half of its exploration budget on Investors Relation.
Cumberland for instance, which has been bought out by Newmont spent only 6.9% of the exploration budget on IR. Some years ago I checked a random list of explorers and found an avarage percentage of 13% IR expenses in relation to exploration.
Lets say it loud and clear: Its pump and dump
The prime target of the company seems to be to mine the wealth of their shareholders - and not gold.