The truth about Mustang

Sorry folks, been a busy day out & about for me, so not able to look at any of the MUS action. Reading through some of the threads, I am just disgusted at some of the blatant rubbish and mistruths being still posted by some specimens! Cant think of any other word to describe them really.

Sorry about the new thread, but in the interests of having the truth told about MUS, their original strategy, and the so-called "change" in direction, I wish to add some information to any who are confused, or perhaps concerned by the rubbish posted by a certain poster.

Firstly ... The stones, including the special stones to be cut, were in fact never sent to the USA for sole purpose of being sold! The very first announcement on Jan 20 stated:

"Mustang also advises that it has sent its first commercial batch of rubies to US service providers and customers. These include the highly regarded gemstone cutter Meg Berry and leading jewellers in California. This shipment is aimed at enabling Mustang to obtain further opinions from experts about the range in potential ruby values and the best marketing strategies to unlock their maximum value ... This parcel will assist the market research team to evaluate the Company’s rubies and to determine which marketing channel will be the most effective and profitable for Mustang."

“This shipment will play a vital role in helping us to place market values on our rubies as well as growing awareness and understanding of our world-class stones amongst customers. “As a result, we will be better placed to estimate the revenue we can generate from our rapidly growing production profile.”

So this is the fact!!! These stones had a primary purpose to expose MUS to the industry, and let them know we are in the market, and what we are & will produce. However, as the company felt there was some value to the stones, it was also proposed that these would sold to interested buyers once their promotional value was over.

However, in connection with selling the stones, we need to remember what else was then announced:

"To assist in this process Mustang contracted the services of an American gemmologist and his team to do a full market study to enable the Board to decide if Mustang will only market its rubies in the rough on auctions, or whether to cut and polish a portion of its stones and supply the wholesalers & manufacturers directly ... This parcel will assist the market research team to evaluate the Company’s rubies and to determine which marketing channel will be the most effective and profitable for Mustang. "

I mean, how clear is this!! Quite clearly this was a "fact-finding mission" designed to gauge the interest in, and valuation of MUS's rubies. The suggested sale of the "special stones" was to be merely the cherry on the top.

Sadly these "special stones" started to gain a life of their own! Unreasonable expectations of $30-50mill were being bandied around here! prompting a few of us poster to warn people that they were setting themselves up for a disappointment. Very few listened!.

The company & CJ were not totally innocent though. They kept mentioning the proposed sale of the stones, and CJ's tweeting started to gain more followers than the Dalai Lama! The idea of selling the stones was not a bad one. It had merit if there were jewelers wanting them, and it would give MUS some needed income. But we need to remember that wasnt their main purpose, and when the "Market Research Team" returned their recommendation, it was rightly scrapped!

So I contend that there was never a "change of direction" at all! Basically, there was NO direction! MUS was finding their way, and had a research team helping them do that. When that team came up with a clear direction to follow, MUS moved down that road .... and moved swiftly and decisively! That included scrapping any sale of the "specials." They will be sold this weekend.

In hindsight we know the "cutting" and idea of the eventual sale was a bad idea. The company could have learned from GEM who had also tried and failed. But over the months I have changed my views on the episode! From thinking it was a mistake that misled investors, to feeling that it was a necessary part of MUS growing up in the industry, an episode that would eventually define it as a company! Why? Because we saw some MASSIVE moves immediately following this:
1] Addition of a new experienced director ... Recognition that the company needed addition help & experience
2] Immediate plans for a ruby auction ... With a date set, gave them a hard target to aim for
3] Immediate purchase of the new lease ... Recognition that ruby production needed to be accelerated
4] Set about hugely increasing the Artisanal Mining Teams ... Driven by the goal of the Oct auction
5] CJ shut down his twitter account and focused on the huge task at hand ... less talk, more walk!
6] The team of worked their butts off! On ground at Montepuez, and around the globe, the work has been monumental!

To put the last point in perspective with GEM ...
June 2011 - formed their MRM jv and immediately set to work getting the mining going.
March 2012 - they were granted their 25yr mining licence, spent some US$33million in developing their mine
June 2014 - held their first auction in Singapore

It took GEM all of 3 years to get to their first auction ... And that is with backing of a large miner & multi-million$$

MUS has got all this done in 2 years! With no money, and no real mining experience. And really we can wipe of the first year, because they were just kicking the dust with pennies in their coffers. The real action only started in May when the company received the clear direction to go, as mentioned above.

Six months, from late April ... till now! Head-spinning, and company making! Yet people want to crawl out of their holes vomiting lies, negatives & mistruths! Forget them! They are literally of no account. Let the truth speak for itself.