CHINA SYNDROME HITS ASX "

This story is going to be interesting to investors and why Aussies should stay away from ASX listed Companies that have Chinese shareholders as major shareholders.  I cringed when I read the Annual Report of an ASX Listed Company named GLOBE METALS AND MINING NL.

I thought I had seen everything but this is proof that the China Syndrome, of Chinese run (puppet managed) investing in Australian Companies has arrived. We all know that the China Stock Markets are manipulated and corrupt. This is nothing new and well documented and the rate of executives on corruptions charges is testament to that theory. I wont dwell on that but these statistics are frightening and shows lack of fortitude, ability and reasoning for a Company to be operated under the noses of our regulators. This is a Company on paper but does not exist in the real sense of a Company. Why is it living.? How can an Aussie Managing Director hold his hand out for $A7,400 a week of shareholders money, for doing nothing?   (and 4,000,000 options to boot.)
Total work done in 2 years: a Lab test on a sample in China and 17 trenches dug in Malawi. Thats it?

Announcements for the Year: 25 Announcements in all:

Twenty Two (22) of the Announcements were Statutory.Quarterly's/half years/general meetings etc.
One (1)  Announcement that was not Statutory:  11th December 2015:  Strategic Review: (see below)
Three (3) Announcements:

21st October 2014:       Kanyica Nb2O Project Africa carried out in Laboratory in Guangzhou China.                                       No further updates or reports since.
9th October 2014:        Chiziro Graphite Project Malawi. Dug 17 trenches and had assayed.
24th November 2014:  Extended the original trenches. Got more assays. Nothing since.  That is the                                          extent of the exploration since and during 2014. Everything else is just Statutory Announcements.
I thought there was a regulation in the ASX that cash boxes could not be listed on the ASX. This Company is the real definition of a CASH BOX.


GBE: Strategic Review:   

 Announcement: 11th December 2015 (3 paragraphs with Paragraph 1 and 3 the same)

Para 1:  "Look for Global Investments outside the Mining and Metals Industry"
Para 2.  "Company clearly establish and prioritise the areas in which its resources to be utilised to maximise return to shareholders."
Para 3.  "Look for Global Investments outside the Mining and Metals Industry. (same as para 1)"

GREAT STRATEGY:   means: Sit on our hands and do nothing.

So what did they do for the quarter: Nothing.  For the Year:  Nothing (paid Directors and staff)

CEO Annual Salary: $385,000 PA Plus 4,000,000 options.   HOLDS NO SHARES IN THE COMPANY

DEPUTY CEO Salary: $360,000 PA plus  2,000,000 options Holds 76,962 shares in Company

Total Remuneration for Board for Year:  $992,968

Projects:   Couple of  "has been" no value Projects worth Zip in three African Countries.

Total Expenditure on Exploration and Evaluation for the Year:      $712,000  (how 1 sample tested in Guangzhou and 17 trenches dug and assayed.

Total Admin for the Year:............................................................$2,375,000

Here are the Major Quotes from the Annual Report....

"During the year, cash management, cost reductions and efforts to streamline operations"  (then they credit their abilities)..(CONSIDERING THEY DONT HAVE ANY OPERATIONS)..."The Company's decision to undertake capital raising last year demonstrated good judgement to ensure long term survival" unquote.....(LONG TERM SURVIVAL FOR THE DIRECTORS NOT THE SHAREHOLDERS)   
     
The Company has no operations except some graphite exploration ground in the middle of Africa and spent nothing on trying to make a go of it.  Board Decision:   Concentrate on long term survival.

Tell me what CEO gets paid $385,000 a year, plus 4 million Options, has nothing going for it. no work to do except manage the cash and raise money, "if it looks like we are not going to survive".

This is an Australia Mining Company!!!!! NO ITS NOT!     ITS A CHINESE RUN AUSTRALIAN MINING COMPANY with Puppets at the top;   Yes it gets worse.

TOP SHAREHOLDERS:

APOLLO Metals Investment Co Ltd                245,983,611  shares  52.37%    BVI (Chinese)
AO-ZHONG International Minerals Pty Ltd    118,143,632  shares  25.15%    AO ZHONG sounds Chinese to me.                                                 Total:                          77,52%    Well done

Anyway, as you can see the Chinese way of listed Companies has arrived. This is slowly becoming the norm.   Raise the cash, protect the cash, manage the cash, ensure long term survival. Is this what it has come down to.  How can a company be listed on the ASX. Oh Yeah the latest strategy::
Looking at possible trading opportunities between China and Australia.  It appears through their detailed investigations and probing that they have "come to the conclusion that there maybe an opportunity in trading between both Countries...WELL DONE FOR PICKING THAT.

THATS WHY THE MD AND HIS DEPUTY ARE ON THE BIG BUCK$

the TRUMP EFFECT WHEN HE IS ELECTED

Coming Soon:  The Trump effect.  Why?. I predict that Trump will Win easily the US Presidential Election. I will post 800 days after he is elected to see how he has done.  I predict he will make Global Politicians look like they are standing still. Just like Obama. Just held the reins for 8 years and kept the US in a time warp.

LITHIUM METAL..The new wonder metal which is having the spotlight shone on it, because it is the current metal of choice as one of the metals used in the alloy to make Lithium Batteries. Like everything else once the price gets too high, they just find another metal. The producers of Batteries are always looking for a new way to make long lasting batteries for the least possible price. A Battery in the new low cost Tesla Car  Cost $US11,000 and the Car Cost to make $US20,000 total  $30,000.

Battery Cost:                                    $US11,000 (lithium)
Car Cost Tesla new budget model:  $US20,000
Car sells for :                                    $US37,0000

OROCOBRE:   ASX LISTED  (ORE)

I have followed this company for a little while and am amazed that the so called analysts in Australia have not challenged the "SO obvious disparity" between the Company Reports and the actual figures used in the Cashflow reports lodged with the ASX on a quarterly Basis.

LATEST QUARTERLY REPORT:   (ORE)  Q2.

1.  Report:  Orocobre has produced 2971 tonnes of Lithium Carbonate (increase of 640 tonnes over last quarter)  This is GOOD.

2.  Average price for shipments $US7,500 (A$10,067) tonne assume $0.745 exchange rate). Quarterly also says:   Significant back orders filled.   This is GOOD.

OK SO LETS LOOK AT THE FINANCIAL REPORT (We have read how great things are)

1. ORE quarterly says,  "2971 tonnes of Lithium Carbonate produced" assume the report above is correct: Revenue should be:    $A29,909,396
This is GOOD

2.   Report says:  Revenue from Lithium for the Quarter:    $A5,581,000    (this is equivalent to 653 tonnes of lithium????)  What happen to the other 2,318 tonnes produced in the quarter.? This is NOT GOOD.

(Remember the revenue also includes the 9,274 tonnes of Borax Produced by Orocobre's 100% owned Argentina Borax Company.  (THIS IS NOT GOOD)

3.   Bottom Line:     Total Production Costs in Report:    $A5,888,000.(without admin costs $A3.5m and interest charges.

4.  Take out other costs:     Balance was $A2,670,000 loss.   This is BAD.

SO SOMEWHERE BETWEEN THE REPORT OF PRODUCTION OF 2971 Tonnes of Lithium @ 
$A10,067 tonne  (Should be revenue of :$A29.9m) we only have Revenue Reported of: $A5.6m in total revenue and that includes the 9,274 tonnes of Borax. Where did the $A23m evaporate to??  This is LOOKING WORSE.

There is no explanation in the report or the financials where the $$$ has floated into thin air. The Company seems to try to illustrate that, "We have so many orders to fill and have just managed to fill all the back orders with this great production, but has no cash to show for it."

IS THIS THE ULTIMATE SMOKE AND MIRROR SHOW.?   CHAIRMAN RESIGNS.  Says I am 60 years old and leaving to do other things...Considering the latest events probably a good move.

I just wonder why no-one not even the auditors or the ASX or the Great Analysts of Australia have not even bothered to read the report and the numbers. Obviously someone on the 21st July read it and the stock was bombed by a nearly 20% drop. I am not an analyst and don't pretend to be but I do read a lot and compute a lot and this one takes the cake and first prize.

I will leave you with this thought:  Every trader knows that the ASX is a Casino, in a casino there a lot games and different games have different catch points, they are all about how to fool the person playing the game.You cant use a computer in the Casino but you can use a computer (algorithm) in the ASX. Go figure.

What is surprising is that ORE was basing the project initially at $US2,500 per tonne for the Lithium Carbonate. The price they are selling for now is $US6,500 per tonne. At  $US6,500 per tonne ORE still cant make money, so one might reflect on what might have been if the Lithium market had been as they predicted $US2,500 per tonne.   Macquarie has  just released a report on Lithium  expecting a glut of Lithium onto the market in early 2017 due to the recent price rise surge. If the price of Lithium does fall due to the expected glut then ORE will probably struggle to stay afloat and as a GOING CONCERN,based on their own figures.

Even on their latest figures ORE are going to have to raise cash shortly anyway. The expected doubling of production they estimate at a cost of $US40m will only add fuel to the fire that is currently a smolder but will surely deliver some heat to the bottom line.

Summary and Judgement:    It appears that the production is happening, but not at the low cost they were expecting.  Plenty of production but obviously not being sold. I think on this one you need to read between the lines.   1.  Great Production 2971 tonnes of Lithium Carbonate. 2.  Back orders filled. Then look at Revenue:  Only $A5.6m in revenue. Can mean only one thing, product either not up to scratch and unable to sell as battery quality product or 2,300 tonnes still in stockpiles. No other explanation. The thing to remember for Lithium and the same for Graphite, both products used in A Grade Batteries.   It is not all Lithium and all Graphite that can be used in making of batteries. It has to be a certain specification. In the case of Graphite only 99.8% Graphite Concentrate can be used in Batteries. 90% of producers cant get that quality. It is not the shortage of graphite and lithium making the market rise its the quality of the product that is making it rise because of the shortage of the premium quality to make the batteries. Need to read the fine print and do the DD on these types of minerals and their end use.   Another mystery is: Why would the company be looking at doubling the output when:  Still losing money at $US6,500 a tonne. Over stockpiled already. Market in oversupply in 2017 forecast.    Reason: Raise the $40m to keep the current production alive is my only guess. Doesnt make sense to spend $US40m to double production just to double the losses. Also the bigger the plant the more power required and more costs incurred. They will just create an oversupply.  Called exercise in futility. The start of creating their own demise.

FOOLS AT THE TOP.   Interviews with fools.

SIMPLE QUESTIONS = SIMPLE ANSWERS - But why didn't you know?

How many people employed in high positions of industry actually dont know the basics of their own industry.

1.  Example recently I asked a diamond trader what is a carat of diamond mean.  Oh, he said its the weight of the stone.   I asked OK that's good what exactly is a carat in weight compared with a Kilogram. I asked how many carats in a gram?  Remember this is a diamond trader with twenty years experience. "Dont know", he said.  I said 5 carats = 1 gram.  Oh he said "thats good to know."

2. We often talk to our brokers and analysts about oil and gas and other commodities. I once asked an oil trader with a hedge fund, "What is the price of oil today"?   Um, $US45 a barrel. ""Oh thats great i said". I asked "What exactly is a barrel of oil", Its a barrel, he replied oil is sold by the barrel."  "Yeah but if I want to compare with the price at the pumps per litre, how do I compare"?   "Fucked if I know, who cares." I told him that there was 159 litres in a barrel,  He said to me,  "shit thats a lot of oil for $US45,  that's good to know, thanks for that.

3.  Same with Gold. Question: What does 1 ounce of Gold represent in Grams? 31grams = 1 ounce.

4. What is the difference when reporting Gold in PPM (parts per million) or gpt (grams per tonne)
Nothing.  1 gram = 1 ppm.  There is 1,000,000 grams per tonne and 1m ppm per tonne.

5.  When reporting the percentage of mineral in an intersection of  1800ppm or 1%Cu. (we all know that Cu stands for Copper, right?)  What does it mean?  What does 1,800ppm actually mean.  It means that the hole returned in a 1 metre zone a grade containing 1,880 grams or ppm of Copper average per tonne..
So what does 1% Cu represent?  10,000 grams or 10,000ppm = 1% Copper.   So 1% Cu in a 1 x metre intersecting actually contains 10,000 grams or ppm per tonne if you mined that material.

6.  What is the SG (Specific Gravity or the weight of a metal per cubic metre) of Copper and Gold and Tungsten.  1 x Cubic Metre of Copper metal 99.99%.  Copper weighs  =  8.9 tonnes per cubic metre.

Gold weighs 19.3 tonnes per cubic metre. ( so could you lift once cubic foot 12" x 12" x 12" of Gold?? it weight approx 1.93 tonne) Tungsten weighs 19.22 tonnes per cubic metre.   Steel is 7.8 tonnes per cubic metre. Water is 1 tonne per cubic metre.     Next blog I will show yoiu something that your eyes will fall from your head.

I have run out of time today but will continue this blog and continue to educate the obvious. This Bog master is going to open some eyes over the next two weeks. Believe me.!

RIPPING THE SOUL OUT OF AUSTRALIANS FORD/HOLDEN

HOW TO RIP THE GUS OUT OF AN AUSSIE

What you are about to read is all true.  You really have to wonder about the selection of people we have managing the economy and the country and in the end our lives.  Another fool we had as a Prime Minister Malcolm (no undies) Fraser.  When I ask why we end up with fools at the helms the question is WHY?. There is only one answer:  Y is a crooked letter and it cant be straightened.

Absorb and suck this up and tell me if your blood pressure doesnt rise and make you feeled ashamed that we are all to blame for the current position Australia is in. These are all real facts:

Australian Foreign Aid in 2012 $7.9B after the intervention of Joe Hockey the Foreign aid dropped to
$3.7B in 2015.   There are as at February 2016, 11,902,003 people employed in Australia. 732,000 Unemployed.  To pay for the 2015 $3.7B Foreign aid each of the employed people of Australia 11.9m of us paid $310.00 each contributed by us workers in tax. OK comprehend that and cop this. Its like a jigsaw puzzle but all comes together in the end.

The Australian car industry Ford and Holden that employees over 200,000 workers shuts in 2017.  The industry will become like the Australian woolen mill and manufacturing industry of garments DEAD and BURIED. In 1954 we had 300 Woolen Mills, why wouldn't we as we are the biggest producer of wool in the world. How many Woolen mills in Australia today?. ONE (1) Back onto the main subject, So Why?, the Australian Government subsidises motor vehicle  industry by contributing $36 billion from 1997 to 2012 or around $2.4 billion a year. The car industry's own data supports a workforce of 200,000 people.  Assume the car industry worker is paid an average of $1200 each per week and each pays income tax of $240 per week,  the Government gets back $48 million in income tax per week or $2.496 billion annually (from the 200,000 workers. So the Government actually make a profit from their investment. Can they be so dumb? yes.

So these so called smart politicians, we have are too stupid to even sit down and do the numbers. This amount of income tax paid is direct tax from the 200,000 workers in the car industry and doesnt includes  the indirect taxes that are paid on the service industry like the Companies that supply the: toilet paper, the grease and oils, the transport companies that do the deliveries, the food vans that supply the workers, the taxis that take them to work on occasions, the restaurants, the hotels and so on and so on. (not to forget the GST)

So the Government decision is to let 200,000 workers become unemployed by withdrawing the subsidy of $2.4b a year and then lose stop the subsidies to the car industry and lose $2.5b income taxes from the 200,000 workforce  and once they become unemployed pay the unemployed workers, UNEMPLOYMENT BENEFITS OF Circa $600 a week each. ($120m per week) or $6.2b a year.   Can anyone make sense of the idiotic decisions.   By supporting the industry by subsidising the Car Industry the Government actually reap and extra $100m in income taxes over and above their continuation to support it.   INSTEAD they want to close the industry down at the cost to the Government of a loss of $6.3b.

IMPORTANT- how does the U.S.A subsidise the car industry and make it work? SIMPLE

Does Australia really have a single Politicians who has a functional brain?  even a fish size brain could work this out.

The USA Car Industry

The U.S.A  contributes $US264 per employed persons as a subsidy for the motro Vehicle industry.   Thats about the same in A$ as every worker in Australia as to pay for our Politicians to give away as Foreign Aid $A310 per employed person. 'The USA worked out they get it all back in Taxes. Our DRONGO'S cant even work that out. FFS.

Malcolm Turnbull so far has overspent $19B as Minister for Telecommunications in overruns for the NBN rollout just so he can download a movie in 2 seconds, YET, he and his bunch of uneducated and moron fellow politicians  are not prepared to spend $1.00 on saving our last Australian major manufacturing industry.  Governments decision outcome, 200,000 families without an income?   Loss of $120m a week in income taxes. A substantial loss on our annual GDP. The Australia Car Industry contributed  $29B to the Australian GDP in 2015.

You and I have let this happen. God help the next generation. We will be leaving them nothing, the only thing the next generation will have left is what, WE LEAVE THEM, NOTHING ELSE.

We now MANUFACTURE NOTHING. We sell our Iron Ore to China for $50 a tonne and then buy it back for $2,000 a tonne. China wants a Free Trade Agreement? are you kidding.  Should never happen.I will discuss this in the next Blog. Until then have a scotch and look in the mirror and say: I HAVE TO DO SOMETHING.....Creeks make streams and streams make rivers and the rivers make the Oceans. Good Hunting. I predict TRUMP will win the USA elections and Turnbull will be ousted by December 2017.  We all know what a 'TURNCOAT IS,  just this one is TURN-BULL.

In short:
1.     Car Industry Provides 200,000 jobs in Australia
2.     The income tax paid by 200,000 (assume $240 pw =  $2,496 Billion Annually
3.     Government Subsidises the industry with $2.4 Billion Annually
4.     Government pay $3.7 Billion in Foreign aid in 2015
6.     Government will have to pay the workers $6.2 Billion in unemployment benefits (minimum)
7.     Each working taxpay 11.9m of us contributes $310 per year each in tax to support the Car                   Manufacturing Industry in Australia. (Gov Susididy $3.7b divided by 11.9m employed persons i         in Australia.
8.     USA each working taxpayer contributes $US264.00 per person to support their Car Industry and          its thriving.
9.      Australia taxpayer pays $A310.00 per year and the US taxpayer pays $US264.00c per year.
10.    So to keep our Motor Vehicle Industry in good shape and employ 200,000 people and contribute          $A29b to the GDP and probably employ another 100,000 business and people in the car                      industry support services industry the Government only has to allocate $5.96c  a week                          from tax paid by each employed worker in Australia. Then gets is back in income taxk from car          industry workers.

Numbers: Stop the Subsidy of $2.4b a year.  We lose GDP of 29b instantly annually, Government loses $2,496B in income tax annually. Government then pays $6.2B in unemployment benefits per year to the now unemployed workers.

Result: We lose the last great Manufacturing industry, we have no Australian ICON CARS, NO BATHURST 500,  (who is going to watch jags and toyota') 200,000 people extra unemployed directly plus service providers, and the tax payer has to find $6.2B extra.

To keep the industry? everyone is a winner and it makes financial sense. To close it is just plain unadulterated madness.   The problem in Australia apart from the Morons we have voted into Government is that the number of new businesses and venture capital has literally stopped. People that have wealth and brains are either putting the money in the bank or moving overseas.  The incentive has been taken away from the Public of Australia.  We are taxed to death. What country in the world would ask people to invest and any profit that is made, then have to contribute 50% of the profit to the Government. Its called Capital Gains Tax. If you lose your investment the Government doesnt want to know abut you.  Compare: Hong Kong 15% company and personal tax. No Capital Gains, No tax on Bank Interest, no tax on deals done outside HK, No GST. The government is awash with money.  Considering HK have no mining industry, no gold, no copper, no coal, no iron ore, but they do have good management of the system and low tax regime. They know that if the tax is high no one will invest. That's what has happened in Australia, THE RISK IS TOO HIGH AND THE TAX IS TOO HIGH.   The Stock Exchange in Australia is nothing more than a casino without any regulation and the worlds greatest shorting house.
WTF,


The Dove