belly to belly reality check

I invested in the two current executives standing - not necessarily in the world class resource, because I trusted them and still do support them. The fact is that their ability to roll with the punches at their level was not matched by the seniors at the mine or boiler room.

I can now finally see the writing on the wall and want to write some frustrations that I have had as a contractor to the company. The company is in one word f.... .

I read with care how the major shareholders have changed and that even the administrator is too scared to list the gang of noteholders. What a shame! I have learnt that the site executives knew of this extortion plan around November last year. What we saw after that was only foot work and closet clean-out. The money was proposed then and the site executives just couldn't contain themselves. How professional!

I also note that it is the $42m tailings that is hampering the ability of the business to be succesful. Well let me tell you!! I know for a fact that the worlds largest and probably most respected proposed a comprehensive plan to build the tailings using about $3 to $7 operational money per year. This ops money would have impacted the bonuses of the dudes so needless to say they opted out of this plan very early. Even though none of the decision makers had ever built a tailings facility. The profesionals that proposed the "more economical way" had more than 80 years of this type of building between the three of them them and the company itself was close to 100 years old just building tailings dam. What a shame! Now we as members have lost our stake. Good on you mate!

I have noted that in reality the ore problem is associated with the level of oxidised dirt that is not recoverable that is the problem - Well let me tell you. I have seen how some of the most respected chemist at a Perth Laborotary suggested a Australian optimal way, that can tell the management where to mine and how much of this unrecoverable stuff there is. Basically indicating you where the money is. The tests were about 30% of the costs of a an elaborate and dangerous test that was suggested by very "green people" and basically impossible to do in Brazil. Needless to say the executives chose the most expensive, dangerous, and Semi-impossible to do at the Santa Rita. Well again the executives have never done a chemical test, and shun away from advice of two very respected chemistry professionals with more that 40 years of experience between them.


Coming back to the recovery of the nickel concentrates- basically the cash register of a mine. Well let me tell you. There are two chemicals essential for sulphide recovery. The chemicals are comparable to lets say water, wheat flour and yeast in the making of bread. Again needless to say the mine in Brazil have opted out of a critical chemical used in the concentration of nickel sulphides. Does it make you wonder why they never achieved recoveries suggested by external laboratories. Well let me tell you try and make a bread dough without yeast and tell me how the bread bakes.

I can go on and on but are not going to do it as it wastes time and it just serves no purpose, as it is going to get me nowhere. By Golly these dudes have "p...." away enough of my investment and I wonder how many others can also tell similar stories.

Oh no, one last one! I hear that the executives in Brazil purchased a company house at the mine town. But not any house, one of the best 8 bedroom houses in the town using member money. Surely it must have been known in August last year that the mine had no cash. Welll!!! maybe it was purchased to house or entertain some of the new money coming in 2014 -2025.

I am just truly disappointed in myself for trusting - well trusting trustworthy people, and I am in fact more disappointed in authorities and regulators not to take care of ordinary folk.

I will never ever invest in a market ever again. Fortunately I am still in my forties and can recover from a great loss to me!!!