Larry Reaugh updates listeners on American Manganese

October 28, 2012

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    Oct 28, 2012 28:01 AM

    Hi Al.
    Thanks for doing this interview. Full disclosure, I too am an investor and don’t feel the story is over regardless of the market sentiment currently. I must say that the chat rooms such as Stockhouse have some contributors asking for Larry’s head, they are making statements that are both wreckless and irresponsible for any investor to make.
    There is a topic that is of current discussion and that is the ‘receivables’ showing in AMY’s books. There appears to be significant monies owed to AMY by both Goldrea and Nevada Mag, 2 other companies in the Reaugh group.

    Setting aside the argument on whether or not those companies should have been able to become indebted to AMY in the first place, it is certainly an expectation of this investor that prior to any further equity dilution for funding is considered, all receivables be squared up first.

    Would you share that opinion Al?

    The topic of Capex and Opex on the EMD/CMD side of things is very compelling but the reason the company has been punished show hard by investors of the time who are giving up is the fact that PFS numbers came in so drastically higher than PEA numbers. Granted , those increases are not related to anything the company had control of, however, since Larry was the spokesman basing outlooks from a PEA standpoint for a lengthy time, the increases in the PFS are being attributed as a failure on his part, mostly by detractors, but certainly proponents were taken aback as well.

    I think the current words on the EMD/CMD projections for Capex/Opex are not going to be accepted so readily because of the PFS quandary.

    Obviously the company has a very current understanding of what an EMD/CMD circuit would cost in a Capex/Opex assessment as the current process involves the components already.

    I don’t know if the regulators would frown on a powerpoint that actually breaksdown the Capex/Opex on the EMD/CMD side by correlating actual PFS numbers to these projections. A powerpoint of that type would better illustrate the numbers with current relateable estimates on components in the circuit.

    Also, as far as EMD/CMD pricing is concerned. The issue for the BCSC on the CPM price forecasts was the lack of public data on EMM. It would certainly be of huge benefit if Larry could put out information on the EMD/CMD pricing that would pass the BCSC ‘public data’ requirement. A powerpoint of information bulletin of that nature would certainly quell any residual resistance to buy into the EMD/CMD circuit projections that were provided in the blog.

    Your thoughts?

    I have to tell you, I have already averaged down as I believe a partnership of some sort is going to be announced in the nearer term, one that bridges the company to a bigger deal at a later date.

    Cheers, Trevor

    Oct 28, 2012 28:32 PM

    What a doggone shame that Mr. Reaugh could not be where he is today about 15 years ago, when industry was blooming and economies were growing.

    Mr. Reaugh is a superb business manager in a situation that is beyond his power to fix. The fact is that we have economic crisis on our hands, obviously not of his doing, and capital is not flowing. If the Reaugh Group is moving funds around, it’s probably just an attempt to move something forward.

    This is a ridiculous bargain basement price by any measure. It would make sense for us to expect that Mr. Reaugh is in touch with others in the industry for the purpose of taking advantage of better conditions in the future. Whether that results in a deal near-term is open to speculation.

      Oct 28, 2012 28:46 PM

      Ain’t that the truth.

      The sentiment will change direction, a few optimization results that prove superior will do the trick.
      Kemetco is striving for a superior product, not average, so positive optimization will knock the battery program out of the park.

    Oct 29, 2012 29:19 AM

    Has Sinclair gone mad, is he seeking the 2013 Fed Chairmanship? Or both?

    Oct 29, 2012 29:52 AM

    I have a significant holding in AMY which I have averaged down to .21/share. Do you feel that AMY has a chance of reaching that level? If so, how long do you think it will take? Also, do you have any insight into how long AMY’S remaining cash will last and what option they have when cash runs out?

    Oct 29, 2012 29:35 PM

    Yes, I believe AMY can reach that level and beyond. The current market cap is ridiculously low. ‘When’ , you ask, can’t give you an answer to that.
    My insight into cash position of any company is based on financial disclosures on Sedar and guidance from management in direct communications. My understanding is that the company is good to year end. Options you ask, the company has offered option possibilities in news release. Various grants are available in both the US and Canada. A partnership with battery side R&D outfits is another. Finally, the option of an equity raise,but, as I have stated, I would only be accepting of such an equity move after all receivables were squared away.

    Was hoping to see Al comment further on my comments, no such luck so far.

      Oct 30, 2012 30:40 AM


      I also feel that AMY’S current market cap is a joke! I am considering averaging down further in the near future. I think people are underestimating the value of Artillary Peak coupled with our patent pending technology! I am excited in the possibilities on the battery side of our business and still feel that the steel side of our business will make AMY a lot of money not too many years from now. The US government would be crazy if they were not looking into securing Artillary Peak for domestic use. I believe many people are not aware that China supplies over 90% of the world manganese supply. I for one do not want to depend on China for this essential mineral! The US cannot produce steel without manganese, and the innability to produce steel would be devastating to the US on many levels. The US millitary uses tons of manganese every year!! GLTA Longs!!

    Oct 30, 2012 30:43 AM

    Would be nice to see some sizable insider buying at this level. Management’s confidence in AMY would restore some confidence among current and potential shareholder’s. I feel that it would also finally put a floor on this stock and allow us to move higher.