NORTHERN SUN MINING CORP LBEFF

I found this note on the AG board

[rocksolid47]

I found this note on the AG board

Mikey, hope this makes cents (get it). The issue as you point out is that the $11 nickel price is always posted in US dollars. So one must convert that into Cdn currency if youre a Cdn company. You pay your bills in Cdn currency. So its important to bring in as much Cdn revenue to met those bills.

With the exchange rate currently almost at par you could almost say the company is earning $11 Cdn for each pure pound of nickel sold.

So if indeed as Gary has said publically that the operating cost is $7 per pound Cdn, you could say there is a $4 profit per pure pound of nickel sold.

However the $7 operating cost is just that. It does not include the extra administrative, amortization and interest expense per pound that also increases your true expense per pound.

Then on the revenue side of things as per the feasibility report, the company does not really receive the posted $11 per pure pound of nickel sold. Theres the question of the 3% nsr's that are paid to third parties who owned the mineral leases before the company. Then there are all the Xstrata processing fees that must be deducted before you get paid the final cheque. Added are the transportation expenses to ship the concentrate to Xstrata. I'm not sure if there are shipping expenses either to get the final product into JnJ's hands. There could be a further deduction from them. Others I'm sure can correct that.

Then one has to ask if there is enough profit (if any) to actually pay down the various obligations of debt and accrued interest, and the preferred shares and their accrued interest. Then you have to hope that there is enough money left over so capital commitments like developing Hart can be met and further drilling, expansions to the mill etc etc. Further debt could probably look after that need but I would assume the current obligations would have to be paid down at least to warrant that.

The recent year end financials give you some idea on how this all adds up if you can keep track of all the pluses and minuses. But then I'm not a CA.

 

[legend7]

So Rocksolid I have one question...do you believe everything that Tantalon said in his message??

[rocksolid47]

Legend, Why not let the financial reports for year end do the talking. https://www.sedar.com/FindCompanyDocuments.do Rocksolid

[legend7]

Rocksolid, Where in the financials would it tell me we have $7 per pound costs at full production? The financials were exactly what I expected no surprises we were not mining that much on a daily basis and there is no way anyone with a head on there shoulders would think we would have turned a profit? Quarter one will be a bit better and Quarter 2 will be even better than 1 but Quarter 3 is when

[rocksolid47]

LegendLet’s see if the orders of these loans are straight. First, 556,630 is (was) due on Jan 17, 2010. Oops missed that one so it gets reviewed for another term at 8% and is due in again on April 17, 2010. It will be worth 560,412 by then. Second, we have two loans of $1,000,000 & $600,000 due on March, 17 2010. Oops, missed those as well. Tack on 8% to those as well and make them due later

[legend7]

Rocksolid, I like how you conviently forget to answer my question regarding the $7 costs that you are lying about!! Nice one you seem to have some similarities to Tantalon?? ?Are you guys  buddiesThe loans you are talking about are mostly on the smaller side and I have no concerns if they are extended it really just shows how commited JJ is to Liberty as a company. All of the loans you

[ExSudburyGuy2]

How come no one's talking about the going-ons at AG? I now understand why anyone who ever criticized a company there got kicked off and banned. It would also explain a lot of the posts by the pumpers. That's where LBE's stock options went by the way. https://www.osc.gov.on.ca/en/Proceedings_soa_20100401_agoracom.htm

[victor2009]

ExSudburyGuy2,I find it very interesting that OSC is going after the "other forum". I think many know AG is a one way street, they are earning fees from companies for promotion, they were not about to bite the hands (including potential "hands") that feed them. Their "policing" system also lends itself to having the forum controlled by one or more individuals

[rocksolid47]

Looks like the bashers have started a new offensive. They want to get attention away from LBE which will soon be JJ. The LBE financial report was abysmal to say the least. It is caught in a debt spiral and is very unlikely to recover. It’s too bad because they had some small but decent properties but was run by a management that has a taste for extravagant spending and under achieving.Rocksolid

[canusa]

Interesting you say that but please tell me why Gary Nash continues to pick up some shares....www.canadianinsider.comHe picked up another 30k last week...

[ExSudburyGuy2]

Re the stock options. This is from the OSC's statement of allegations: AG "offers pricing models for its clients which incorporate a monthly fee and stock options equalling the greater of 250,000 shares or 0.5% of a company’s fully diluted outstanding share total at current prices." In other words, in exchange for faking posts to look like there was interest, pumping the stock and

[Nickel77]

ExsudburyGuy2,  Is there a reason you never try and phone or email LBE to get your questions or concerns answered before suggesting LBE might be involved in something?  They do answer and respond to all concerns.  A quick call this am revealed “The options were set a $ 2.39 and not exercised.  LBE then cancelled the contract after 6 months”.   Hope this clears up

[victor2009]

ExSudburyGuy2 / Nickel77,Thanks for the information. AG would be starving on quite a few contracts if they were relying on options only. I can understand the temptation to use a promotion firm when trying to raise money in the mining business - you're competing for risk dollars with other companies, some of which have some very aggressive (borderline deceptive) approaches to promoting.