RE:RE:Very Important Questions for Rancher aka (Mineworx)Rancher, you and your aliases continue to disappoint. I find your obvious apprehension of people asking intelligent questions quite disconcerting. The fact that your only response is to "attack, cancel, and change the subject", is a well-documented tactic used frequently in both politics and discussion forums.
Pushing the Iron Bull fantasy is simplistic slight of hand. If the team is so intelligent, why are they buying a tiny and extremely limited iron ore exploration target for multiples of what its worth. (
See FEO)
It seems you operate in a typical "Liberal" or CBC mindset, "
you're only allowed to ask the questions we approve of"...", or "
nothing to see here, and change the subject...", or "
attack the person that dares to ask the wrong question!". Your “Liberal” style of cancel culture is a threat to free speech, prohibits meaningful discourse, and makes intelligent people even more suspicious of your intentions.
The fact is, the questions outlined below are all relevant and
vital to the future of this company and its shareholders. They need to be asked and answered. I and many other shareholders want to know the answers, and I am alarmed that you find it offensive to even ask.
If you think the questions are irrelevant to shareholders, please explain why. The company has been asked many times, but maybe if
you ask... Simple answers are fine.
PS: You must have at least considered these obvious and simple questions before you invested so much in this company and promoted it so enthusiastically, right?
Vital questions that need to be answered
- Why would MWX set such a high sale price ($20M) if it's simply a spinout to benefit current shareholders? There are many highly advanced iron ore companies (eg: FEO) with billions of tons of proven reserves in Canada that have market caps 50% less than MWX. Comparatively, this would place a potential value on the MWX project somewhere in the thousands of dollars.
- If not, how is the $20M valuation established? The higher price simply implies value, where in reality, none exists. The higher the deemed disposition value, the more taxes the company (or likely shareholders) will have to pay. What is the rationale? Where is the independent valuation?
- Why would someone pay $20M for an exploration target with an unqualified and tiny resource of only 7M tons, when so many other more qualified iron ore companies with Billions of tons are valued at 1/2 of the that amount (FEO).
- MWX said they will carve out $17M of value from its books to accomodate the spinout, (63% of its current MCAP value) yet the only consideration it/we get, is shares in a non-arms length, private company with an unknown cap structure. Shareholders might only own 1% of the private new company. What is the structure of the new company?
- As a private company, there is no market for the shares of the new company, so will shareholders have to liquidate other positions to pay any taxes on the dividend value, which might be taxed as income?
- Why did MWX never disclose last year's exploration drill results of the property? Were the drill results good or bad? Where is the required disclosure of the results under NI 34-101? The securities Commission may demand disclosure or they may halt the stock.
- Regarding converters, has anyone asked MWX how they plan on competing with Global Refining in Montana for raw goods? Mineworx can only process 50lbs (?) per day of catalytic converter material but Global has a current capacity of 150 tons per day and includes diesel-based converters. They and other refiners pay over 95% for platinum, palladium, and Rhodium. MWX admits they can only recover 90% of the platinum and palladium and none of the Rhodium?
- How much can MWX realistically pay for raw goods? Assuming operating costs are only 10% (which is unlikely), that still leaves only 80% payable to buy material, pay commissions, and pay their partners. I would guess that 75% might remain to pay for raw goods.
- How does MWX expect to divert feedstock from Global’s supply network, or other refiners, if they pay 20% less and they don’t pay for Rhodium? Why would Davis, or anyone else for that matter, sell product to MWX for 20% less than what they can get from Global and/or other refiners?
- Why did MWX move the little test plant to Tennesse if they are only testing a small amount every day? Isnt it easier to secure (or ship) simple converters here than move an entire plant?
- If its only a tiny test plant and eco safe, why the permitting problems?
Shareholders have the right to know the answers to these simple questions.