Al and Roger discuss American Manganese

October 8, 2011

Al and Roger discuss American Manganese and the need for a domestic supply of manganese in the U.S.

American Manganese Inc. is a mineral resources company actively engaged in the acquisition, exploration and development of a diverse portfolio of metals in demand commodity markets.

The company focus is on the growing market opportunities in the Steel Industry, evidenced by its recent bold play into the rising Manganese Market with acquisition of Artillery Peak Manganese Properties in Arizona, recognized as the largest known manganese deposit in the Southwest USA at a time when this strategic metal faces declining supply resources. Drilling, leach testing, and mine planning are underway.

To Learn More Visit:

    Oct 09, 2011 09:37 AM

    Great video, Al. I agree with you on American Manganese (AMY) and I think the company has great prospects. I purchased shares in the company about four months ago. I believe that despite any short term dips in the stock, and it will yield great long term growth for investors. I also think Exploration Orbite (ORT.A) is interesting. They have a proprietary process for extracting aluminum from clay soils that supposedly makes them one of the cheapest producers of aluminum in the world.

    I do have to ask what is the dog’s job in the video? Cameraperson or technical advisor?

      Oct 09, 2011 09:04 AM

      Hi Nick,

      Appreciate your asking this technical question.

      Callaway is our technical adviser in the area of deciphering U.S. liberal issues. She gets them a lot better than I seem to.


      Big Al

    Oct 09, 2011 09:38 AM

    I also forgot to say, great video, Trader Rog.

    Oct 09, 2011 09:23 AM

    My personal opinion of Reaugh (never having met him) is that he is a hustler that looks after number one first. Sorry Big Al. It may just be that he is flamboyant.
    Filing date Tansactn date Name
    Aug 23/11 Aug 19/11 Santelli, Anthony Enrico Direct Ownership Options 50 – Grant of options 250,000 $0.580
    Aug 23/11 Aug 19/11 Reaugh, Larry Direct Ownership Options 50 – Grant of options 600,000 $0.580
    Aug 23/11 Aug 19/11 Wright, Kenneth Direct Ownership Options 50 – Grant of options 100,000 $0.580
    Aug 23/11 Aug 19/11 MacLeod, Michael Elson Direct Ownership Options 50 – Grant of options 350,000 $0.580
    Aug 23/11 Aug 19/11 Piorun, Teresa Direct Ownership Options 50 – Grant of options 150,000 $0.580
    Aug 23/11 Aug 19/11 Kikauka, Andris Direct Ownership Options 50 – Grant of options 100,000 $0.580
    Aug 23/11 Aug 19/11 Hildebrand, Paul Direct Ownership Options 50 – Grant of options 300,000 $0.580
    Aug 23/11 Aug 19/11 Lee, Edward Charles Direct Ownership Options 50 – Grant of options 300,000 $0.580
    Aug 18/11 Aug 16/11 Santelli, Anthony Enrico Indirect Ownership Common Shares 10 – Disposition in the public market -25,000 $0.570

      Oct 09, 2011 09:24 AM

      Hi cfs,

      Just commented and then slid my hand over my computer and the whole thing disappeared! Oh well, here goes again.

      At the start let me say that Larry is a pretty decent human being.

      Regarding the compensation or options.

      Let’s assume that AMY becomes wildly successful and does evolve into a major U.S. producer. No guarantees, of course, that will ever happen.

      If it does let’s say the stock goes up to $6.58. Larry than makes $3.6 million on these options. In order to realize this and any other profit he has to make sure that the company actually gets to that point and, by the way, if it does he will have contributed significantly to our economy down here by taking away dependence on outside sources of manganese.

      Okay, so he picks up $3.6 million. (Maybe!)

      Let’s compare that to the compensation of many of the high tech folks over the past 10 – 15 years. In that industry we are taking money in real size, like hundreds of millions of dollars.

      I guess that is why I like the resource industry. I believe that I understand it and, to me, it seems manageable.


      Big Al

    Oct 09, 2011 09:52 PM

    $3.6 million from these options, over $60 million from the rest of his shares

    Oct 09, 2011 09:07 PM

    Of course, Since we are now doing a fuller analysis.
    Larry is not working full time for AMY. He’s also pushing Molycor Gold and Goldrea and was on the board of some now apparently inactive companies.
    I have not ascertained whether he also receives salaries independent of incentive options.

      Oct 10, 2011 10:53 PM

      Larry gets options from his other companies as well. I don’t know about a base salary.

    Oct 09, 2011 09:29 PM

    The issue with Larry Reaugh is not his stock options but his lack of success with his other ventures such as Molycor, Goldrea, and Adanac Moly.

    In the case of Goldrea, he never could get a deal done with the Daye mine and mill. Meanwhile he sold his stockholders a ton of promises and delivered on none. Now Goldrea is probably years away from Daye mine in a full-production mode.

    So how is someone to believe that Larry Reaugh is going to take American Manganese to the point of full production when he couldn’t do it with Goldrea, and it seemed with Goldrea, he had at least 2 golden opportunities to get a financing deal done. If you can’t get financing for a shovel ready gold project with gold at $1500+, I don’t see how you can project success with any other venture.

      Oct 11, 2011 11:39 AM

      I do not know the particulars of the Goldrea company. From what I have heard China is a difficult place for foreign mining companies to do business. I think many mining companies that have rushed into China over last few years to develop mining projects have now become entangled in the Chinese bureaucracy. Silvercorp Metals (SVM) seems to be a good example of a company that has become entangled in the Chinese way of doing business.

      Another example is Mondoro Capital, (MUN), apparently their gold project did make any headway until they agreed to sell 95% of the company’s shares to a Chinese company. The details are in this news release

      I know very little about the Goldrea company, and I do not own shares in the company. I can only guess that the Chinese government is keeping as much of their natural resources as possible under their control. They seem to be shifting from net exporters of natural resources to net importers. This could be in line with their plans to further develop the country’s industrial base. In the future it may be very difficult for a foreign mining company to operate in China without giving up significant control of the company to the Chinese government.

        Aug 26, 2012 26:16 PM

        Aug14bigjeff Im watchin what you petsod, think about it, programed iphones to act at a certain time when they are turned on, thus the performer has to get the timing perfect Just how long has he had time to ge tthe timing right?

    Oct 09, 2011 09:39 PM

    Very excited about the prospects of this company. Thanks for bringing it to my attention.

    Oct 09, 2011 09:57 PM

    Excessive dilution by granting stock options is worrying, which happens regularly, often after a new issue of shares. He has raised over $250 million for his projects and delivered little but promises.
    American manganese run by Reaugh since 1998, was at one tme called Rocher Deboule Minerals, and has been pushed as a coal exploration company (the assets of which were given up) and then as a rare earth company (the assets still held after the name change) and now as a manganese company. I hope this time he is really onto a viable project. If one takes what he says as truthful, it certainly seems highly profitable potentially.

      Oct 11, 2011 11:16 AM

      Thank you for your intelligent and thoughtful comments. It is always good for someone to look over the finer details of q junior company’s share structure. I agree with you that excessive dilution of shares in a company can short change shareholders on future equity growth in a company.

      I would also like to add that the Canadian Insider website provides the stock transactions of a listed company’s management and directors. This site gives a good picture on whether a company’s management is buying shares in the company or selling them.

      Another good site is SEDAR. This site has all the public reports that a company files with the securities regulators. The share structure of company can also be diluted by excessive warrants and also when the warrants hit the market they can drive down the share price of a company.

      An informative article on the effect of warrants on a company’s share price is at this site:

    Oct 10, 2011 10:28 AM

    Good Morning cfs, Matt R and Tony,

    Be back with you later today with more comments of my own.

    Thanks for your input,

    Big Al

      Oct 10, 2011 10:56 PM

      You’re welcome. Don’t get me wrong Larry Reaugh might be a great guy but the lack of progress in his other ventures needs to be brought to light as well. If Larry Reaugh thinks otherwise, he is welcome to address my comments either in this forum or in an interview with you.