Tuesday, September 6, 2022

The RIO2 enigma - Conspiracy Theory 101 - update IV

And, sure nuff, Blackie issues a NR a day after Mark Turner expells ass flatulence. Here. Whats the deal finally? Precisely the same thing spewed here 60 days ago and it surely ain't good. Another 2 years of nada thing being approved. Nada thing was spewed about the huge pending Wheaton liability whilst Blackie was bragging about how much cash he has to piss away. Blackie brags about laying off locals, but how many of the 40 odd managers are taking a hike? Co's problems are obvious and this paper, as it sits, ain't worth holding at all.
We have confirmed aretard Mark Turner whispering sweet fukkin nothings about RIO2 again and folks may stick a fork into that. Anonymous was ALL OVER the bulls and why not? We have Eric Sprott and Wheaton sitting on true chitloads of worthless paper. This is a chronic problem resulting from a fast one, likely splaining why anybody with a brain would NOT be impressed with this garbage until that horrid balance sheet is addressed. Alex Black has done NOTHING to reduce cash burn in the 60 days since being denied a permit. Piss Mine is capped $65m (USD) and what do holders 'have' for that?
After minimal digging, 43-101 costs are indeed from 2014. As one example diesel was priced at $.70. That is apparently $1 today. The all in cost is/was $11.40. A body could likely up that to $12 for ease of number crunching. By some amazing coincidence the resource number grade of .38 g/t gives us a breakeven at all-in costs of $12 per ton ($54 cost versus Au at $55). Our 43-101 provided resource number is the break-even, forget the ridiculous cut-off grade of .24 g/t. The cut off grade is de facto .38 g/t. This truth very likely explains why Alex Black holds out a hand picked sample as representative at .46 g/t. If he doesn't Fenix does not fly because it is clearly uneconomic. Alex Black is playing stakeholders as complete fools.
Running the bare essentials past a respected mind brought a one sentence answer. My response to that included a reference to Mr. Alex Black's dirty balls. The rubbish makes great sense if Black and Wheaton were in cahoots, planning the looting of what Au can be extracted at any cost.
"I ran the numbers and it surely ain't good. .38 gms/ton @ 60% recovery would be 4.5 tons needing to be processed to obtain 1 gm of Au, worth around $55." I pulled grade of .38 from the 43-101, which one ought to rely on for resource numbers. 4.5 tons at the also supplied all-in cost of $11 gives us $49.50. The expected return on the resource is $1 per ton, at most. WHO would then throw away multi-millions on a clearly non-representative sample of .46 g/ton? It is ridiculous to hold out the test pit whilst ignoring the 43-101, but that is what these clowns did.
Next numbers should be along soon. Co has $15m in new machinery. One begins to wonder what one does PRECISELY with industrial equipment that has no legal reason nor permit to be on site at all. One assumes it must be mothballed. Does one eat an impairment on that? Likely not from this CFO. It is being suggested a new EIA is another 2 year proposition. That is an additional $26m at this Co's cash burn rates.