Callinan Royalties Corporation CCNMF

RE: RE: CAA's leadership

[clestor]

I think this is beyond incredible . . .

"(c) Coles Creek
On August 1, 2005 the Company entered into an agreement with Mike Muzylowski, President of the Company, under which the Company was granted the option to acquire a 100% interest in certain claims . . . To date the Company has incurred exploration expenditures of $8,571,724, . . ."


Muzylowski has spent $8 mm of shareholder funds on his own property and shareholders don't have anything to show for it.  For far less upfront cash, CAA could have optioned a promising early stage project and over the ensuing 5 years derisked the project and potentially put it into production.

Muzylowski is simply milking CAA.  Hopefully they spin off the 777 assets and Muzylowski goes with the spin-off, leaving the stub to move on with new mgnt and condemn the current junk Muzylowski shamelessly promotes.


But, the enterprise value is roughly $50 mm (assuming fully diluted share count and reducing it by the existing working capital plus cash from optns & wrnts) which is about 2.9 times the NPI from Hudbay (annualizing the latest payments).

In additon, HBM owes CAA $50 mm to $100 mm due to underpayment of the NPI which equates to roughly $1 to $2 per fully diluted share.

So, CAA has an incredibly low valuation which more than fairly discounts Muzylowski and inept board of directors.