Robert, my understanding is Peter Tagliamonte bought shares before he joined the company. We know the price of the stock was plus $0.60 at the time.
The impairment charge, in the Q3 report, will not affect our cash flow. The average selling price of gold in the third quarter was $680/oz. This is an increase of $15/oz. from the second quarter. Limon’s production cost in the second quarter was $540/oz. The most relevant cost in mining is the cash operating cost. Limon’s cash operating cost in Q2 was $463/oz. which brought $2.2M back to the company. Peter Tagliamonte has more than once stated $350 cash operating cost at both Limon and the new Libertad is the company’s target.
Dennis is still of the same opinion to vote against the reverse split. He mentioned to me the Aberdeen people desired the change, but did not force it as a condition to the financing.
The Limon mine is running smoothly. I suggested to Dennis to release an operations update on Limon. The bad news we have endured in the last two months from Bellavista would be somewhat offset by a positive update from Limon’s operations. He did tell me Dr. Bill Pearson, VP of exploration will be back from Nicaragua at the end of November. At this time Dr. Pearson will submit his exploration drill plan to the BOD. Our drill rigs will begin to turn shortly.
The best information I heard from Dennis today is the BOD has decided to overhaul the investor relations department. After the vote and new name, Peter Tagliamonte will be updating shareholders on a monthly basis and in Dennis’s words perhaps even bi-monthly. The message to shareholders will be through open conference calls. Analysts, brokers, fund managers and investors all over the world will get more consistent updates from our new company. The increased level of communication will give us an important edge over our competition. I believe traders will find it difficult to sell when they are in constant communication with the company. The new high level of communication will deteriorate the paid basher like he has never been. This is a proactive approach in communicating with investors. I for one again commend Glencairn’s management on this astute investor relations improvement.
I am curious, how many are executing the stock certificate strategy Mr. Sinclair is warning us about. It is certainly something I will be looking into over the weekend. Perhaps the time has come to strongly protect ourselves and contact the broker to request our share certificates. It’s getting too close to play around with my security. Imagine gold explodes upwards and your Glencairn holdings are frozen due to the credit derivatives problem.
Posted On: Friday, November 02, 2007, 6:35:00 PM EST
Time To Protect Yourself
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Dear Friends,
If you have not started to protect yourself do so on Monday please.
I am quite concerned for all of you as inertia usually prevents people from protecting themselves. I always wondered how a certain ethnic and religious persuasion could remain in Germany as Hitler was clearly coming into power. I would have been out.
Even then, many of those who remained in Germany saved a great deal of their fortunes by certifying their investment shares in international companies, then burning the paper certificates.
What I am getting at is that the signs of an international financial accident are in those incidents that have recently happened.
There is no hiding place as this is a product of the greed and avarice of the new geek kids on the block who have killed themselves, their industry and hurt everyone everywhere. I am sure that in years to come derivative traders will be seen as pariahs and criminals deserving of prison - not as the multi-millionaires they are today.
On Monday start to protect yourself to the degree it can be accomplished by removing people and institutions between you and your assets. This is the real thing. This is what was discussed in the 1970s but did not happen. It was discussed by many in 2000 but it is happening here and now. There is no functional tool to stop a derivative meltdown. It will like the grim reaper clean out many financial institutions and start a domino effect that I do not want you to be caught up in.
You understand by now that I have the wherewithal (experience/industry contacts/etc.) to know these things before others. Call it cell memory, genetics or my historic access to some of the best teachers on earth in finance, risk management and markets. It's simply ingrained in me. Truth be told, Bert Seligman, my father, knew before the market knew; Jesse Livermore, one of the greatest traders of all time, knew before the market knew. Who knows how? I generally know before the markets figure things out. I tend to know the end at the beginning. It has been so all my life. This is why I am able to do the things I do, take the risks I take, and build the companies I have built.
I want you to be safe. What can it cost you to take precautions? I believe that the cost to you is nothing. I am telling you to take less risk, not more. I know the central bankers will burn the dollar before all this comes down. What concerns me is that all this could easily get out of hand.
Operation "White Noise," is getting hair thin as more and more financial institutions fess up to their ignorant greed-driven self destruction.
Tell me if you have started. I want to get a feel for how many of our CIGAs are taking action. Drop me an email at trechairman108@mac.com. I am not asking for a tome but simply "yes, I have started to protect myself." Help me help you by giving me a feeling for how many of you have taken action.
But first some advice:
- What you cannot withdraw and is in cash put into short term treasury instruments. For those able, I prefer Swiss and Canadian dollar Federal T bills.
- Convert your investment shares into paper certificates. Do not lose them!
- Reduce personal debt for peace of mind.
- If you have coins stored at a coin dealer take delivery of them and request prompt service.
- If you have accounts at Internet financial entities close them and transfer the accounts to a smaller firm that can confirm in writing that they have no over the counter derivative exposure. Be sure to ask for certificates for your share investments and take delivery of them.
- Reduce - if not eliminate - your margined position even if that means selling down to rid yourself of debt on your securities or gold assets. The swings in gold now are going to become so violent that most people will not be able to tolerate it when debt is attached to their positions.
This is a time to be conservative, not adventurous. Gold is going to range trade wildly, but it is as I see it targeted here and now for $1,050.
My greatest concern is that my longstanding price objective of $1,650 might be much too low an estimate.
Sincerely,
Jim
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