January 23, 2019 

Another U.S. precious metals miner goes foreign


Page 1 | Page 2 | Page 3 | Page 4 | Page 5 ]

 By auriferous

11/24/2002  3:55PM

After leaving the 16-to-1 as Mine Engineer, I worked as a civil engineer in Roseville for four years. I am now also a licensed Mining Engineer in the State of Nevada. I am also now Lead Underground Surveyor (and part engineer/geologist) for Stillwater Mining's East Boulder project. I did not leap blindly into this endeavor. If anyone has any questions about Stillwater or the 16-to-1, please let me know. I'll try my best to answer.

Jason Burke
 By lynwood

11/22/2002  9:51PM

I knew tHis FORUM COULD BE A REAL AREANA FOR TRUTH ABOUT THE EXPANDED WORLD OF MINING. When Miller went after Homestake Mining he knew what he was doing. HM was a casualty of war.
bluejay, you told me a bunch about Stillwater and global mining.
One day during a 5 day MSHA quarterly inspection, Stillwater was issued 135 citations on just the third day!
One regular quarterly inspection.
When the LA Times reports that the Sixteen To One got 180 citations in 17 years, what would readers think about its safety program?
bluejay, thanks for your research. More anytime.
 By bluejay

11/22/2002  2:09AM

It was announced today that Stillwater Mining has proposed selling a majority 51% equity interest to Russian company, Norilsk Nickel. This anticipated transaction follows behind the foreign sale of Homestake Mining to the Canadian miner Barrick Gold. The Homestake shareholders are to blame for allowing this American tragedy.

Clearly, Norilsk Nickel had the financial strength to carve out a better deal for themselves than the ailing Stillwater. Stillwater is still smarting from a battering of filed class action suits that originated following a SEC review of its filed shelf offering. The SEC advised Stillwater that in "their interpretation" of the industry standards the company was overstating their probable reserves.

Stillwater's alleged foul was they were vertically projecting their probable ore reserves in certain ore blocks for distances of up to 1,900 feet beyond sample points. Stillwater Mining stated,"These projections were based on demonstrated ore continuity within the J-M Reef, the Company's knowledge of geologic features affecting ore continuity and reconciliation of prior ore reserve estimates with actual mining results." Stillwater resolved the SEC's concern by lowering the distance of projections to 1,000 feet.

Francis R. McAllister, Chairman and Chief Executuve Officer said, " While the Company's ore reserve methodology has stood the test of 16 years years mining experience, the scrutiny of independent experts and now this review by the SEC, it is important to put this matter behind us with a manner which we believe fair to our shareholders."

The "their interpretation" has significantly cost the shareholders, not the company. In addition, you can always count on the attorney's when they smell blood or have been politically pointed in a specific direction to satisfy someone's greed or necessity against the shareholders.

As a shareholder of Stillwater, there is the smell of a big rat with this deal. Norilsk is giving the company $100 million cash and approximately 876 thousand ounces of palladium in a declining market.

In December of 2000 palladium almost hit $1100 an ounce and today it's on a low of $274 after breaking some support at just above $300 an ounce level recently.

The Russians are shrewd metal traders. In 1996 Boris yeltsin said, We'll sell the world all the palladium that they want." That's when palladium was selling for $125 an ounce. Four years later it hit about $1100. Yeltsin proved to be no less than a market thug, manipulating traders to sell the metal short and in the later process of higher prices squeezing the life out of them when his country withheld palladium from the world market for an extended period and blamed it on labor problems. The labor problems were the result of the government not paying the miners. Trust the Russians, I don't think so.

For the first nine months of 2002 Stllwater reported total cash costs per ounce of $279, not total costs, cash costs. With the last sale per ounce of $274, what do you think will happen if palladium goes further into the tank? Big daddy Norilsk puts his money into the company and takes more stock and the original shareholders take home a smaller piece of the pie. Eventually, maybe, the Russian company owns the whole pie and America has lost another great mining company with the largest single deposit in the world of palladium. That would be nice for Norilsk Nickel, they could be another Debeers(head of the world diamond cartel) and tell you and I and industry what we'll have to pay for their precious palladium.

This deal may have started with someone, guess who, looking for gold. Norilsk Nickel recently acquired a Russian gold producer and now accounts for over 15% of Russia's gold production. Maybe, Norilsk said, if I direct my gold to you, what can you do for me?

If anyone still has any questions about the integrity of dealing with these people give Bill Gates a call and ask him about the experience that one of his companies by the name of Pan American Silver had with them.

This deal if it originated with someone trying to locate a gold source may indicate that some part of the 994,832,857 ounces of gold that is short in the marketplace is starting to wriggle. There currently is a fierce battle being fought between the people who want to hold gold as security against a financial meltdown and the commercial banks who have been selling gold that they do not own. The commerical banks, through derivatives, represent 89% of the total short position. The legitimate hedging gold producers account for the remaining 11%.

It will be another national shame if this is the start of another scheme to steal one more of our important mining companies. It is bad enough when the little gold producing companies are taken to the mat without moral cause but to witness the loss of another big mining company would be a blow to our national dignity

Page 1 | Page 2 | Page 3 | Page 4 | Page 5 ]


© 2019 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910

(530) 287-3223      
(530) 287-3455

      Gold Sales:  

(530) 287-3540


Design & development by
L. Kenez