There seem to be a group of people that just can't seem to look...

There seem to be a group of people that just can't seem to look at MUS logically. So here is some basic information.

1. Mining has costs. It cost MUS money to dig rubies out of the ground. For mining to be profitable, and for the company to be worth anything, you need to sell rubies for more than what it costs to dig them out of the ground. This is called profit. If you can't make a profit, the company and tenement are not worth anything.

2. Its all about grade. MUS has poor grade. It is only about 0.3 carats per tonne of dirt. GEM next door (who make lots of money have 8 carats per tonne of dirt). This is why GEM are worth something. Just like a copper find it great at 5%, and its worthless at 0.3%.

3. MUS rubies aren't special. Everyone banged on about how the quality of MUS's rubies were better than GEM's. Well, guess what, they are not. They are not worth $300 a carat. Yes, GEM sold 3% of the best rubies at $300, but not 100% of them. the remainder 97% are not special, and the average across the 100% of them is about $25 a carat. The same as MUS action results. The BIG difference is the poor grade (see point 2).

4. They never dug 400,000 carats out of the ground. The sale was padded out with buying from the locals (as discussed). This gave the impression of great things. Look at the processing plant capacity and times it by the grade and you get a feel for what they dug out of the ground and what they bought from locals.

5. Management don't have a great history. They dug diamonds they couldn't sell, they had specials they couldn't sell, now they have rubies they can't sell.

6. They got finance from a desperate source. This was always going to hurt investors. If you don't understand this point and the mechanism of it, you should not be putting your money into spec miners.

The above point are just the really obvious ones.

Ask yourself this question. With all my investing knowledge, Is this the best I can do. Is this where I want my money to be, can I find anything better?

Anyway. I hate to see people lose money, but it will be ugly today. GLTA. I hope your investing knowledge increases after today. Some lessons are hard but it can be the best way to learn, and make you a better investor.

TTC.