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Message: About this AS folly

"I am trying to figure out how the mill is running at a loss when the mill has over $7 million in stored concentrate?"

The mill is running at a loss because it has cost much more to run than it has produced in saleable gold and silver. Check the filings and compare the mill costs and revenue. Once again, I have to remind you that the "concentrate" you speak of is not concentrate, it is in fact partially depleted ore (the opposite of concentrate). It is not in a form that can be readily converted to revenue. It has been run through the mill inefficiently, and will have to be run through again once the flotation system is installed, running, and brought up to speed, and then run through the leach system when that is in place (maybe a year from now). It took two years to run it through the mill the first time. How long do you think it will take to process it again, at least doubling the milling costs? Please don't fall for RK's fairy tale that SFMI has $7M in inventory just waiting to be converted to cash. That $7M is years away. If you're going to count that, you might as well also count the $200M in the 800k tons of waste ore on the mountain- after all, it will only take 20 years or so to process it at 100 t/d- once they have finished re-processing the 30k tons.

Yes, RS found new veins- too bad that PQ ignored RS's recommendations and took the money that should have been used to drill and gave it to himself and his family.

I have never taken PQ to task for what I consider legitimate mistakes that every business endures. What I have been critical of is greed, dishonesty, and failing to correct his mistakes. Trying to build the mill in Melba using the wrong guy was a legitimate mistake, but leading us to believe that everything was fine and that the Melba mill was about to produce when they already knew it was a complete eff-up and were already planning to move to Diamond Creek was simple dishonesty. Building the mill using a system that could not extract the gold and silver efficiently enough to turn a profit was a mistake (though one that could have been avoided if PQ had hired real mining people instead of his family), but not telling us for two years that the mill wasn't doing the job was a lack of honesty. And doubling and tripling his and his family's salaries, and adding bonuses on top of that, in addition to the outrageous payouts from GHDC (a company that does little besides collect rent), is outrageous greed- especially when that money could have been used to drill the mountain years ago. And refusing to correct his mistakes- keeping family in overpaid positions they have no qualifications for after demonstrable incompetence such as CQ running the mill inefficiently, or his daughter misfiling the claims, and keeping himself in charge long after the point where he had said he would turn the company over to someone with the mining experience necessary to run the company properly- has demonstrably hurt the company.

Again, I'm fully aware of the progress- but I also recognize that SFMI would be much further along if not for PQ's stubborness, greed, and dishonesty. Legitimate mistakes are forgiveable- but much has happened that is not.

As for dmagnus's comment:

"it's unbelievable where some of these people who never bother to go to a SHM get this stuff."

I got a lot of my stuff at the SHM two years ago. The rest of what I've talked about I got from the PRs and filings and communications with IR.

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