Spoke to Patrick todayI spoke to Patrick today, he and Bernard are both back from the European trip and really excited. Obviously disappointed in the trading action he described it as a real damper after the fantastic few days they had in both Germany and Prague, amongst people who are heavily into Silicon metal.
Patrick believes the pressure on the stock is due to two separate and compounding effects, (1) the generally depressed state of the TSX over the last week or so, where many venture stocks are suffering badly and in general, and (2) the probable financial institution selling of the Nov 11 shares sold in the summer PP, he indicated they are only in it for the money and have no problem dumping the shares once there commission is paid and the warrants are in hand, to make the cash available for other investments, not much we can do about this its just the way business goes.
I asked about the spinout, he indicated they are working to have it completed by Months end, so we can forget about anything for a couple more weeks at least.
He was very positive about what transpired at a meeting in Gemany but was not in a position to discuss anything. He did indicate that it would be really great to be able to have some news about it but that this needs to be discussed by management first.
He told me a lot about a presentation he attended with Bernard that was by the company who are building the new facility in Iceland (they are planning 4 more like it). They were both delighted to hear what the process was and how it all worked, its clear to them both that Purevap is far far superior to the process that was described in several area's. The process is very energy intensive and seems to require at least 4 meting cycles of which involve meting large amounts of aluminum to mix the quartz with and allowing to harden at least a coupe of times with some kind of crunching operation in between the melt cycles., also needs a lot of wood chips requiring a large amount of trees to be chipped up and processed as well.
Apparently the aluminum is required to a large extent to remove the Boron, so they are very confident that going forward the Purevap process is by far the leading process for the future manufacture of Silicon metal,
By the way, the process to be used in Iceland still starts out with Silicon Metal! not Quartz!.
Patrick reminded me of the situation around this time last year which was in fact after the news broke about the Pyrogenics partnership and plans, where the share price dropped down to 2 cents in December but then took off in the new year and hit 30 cents at one point. Obviously it is not clear why that happened but we may be seeing a similar thinking now for all we know.
One thing is for certain; there is no reason from the company’s point of view for poor performance in the share price besides the selling pressure because of the finance company action to dump the shares that were backed up by warrant’s sold this summer.
Also he pointed out that the Finance company that offered 22 cents in the most recent pp did so based on their own DD not based on a price that was made by HPQ, so they are obviously seeing positive things for HPQ down the road.
Hang In There!