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October 7, 2007 Dear Friend, A common inquiry we receive involves our future time and
report writing allocation between “very large” and “smaller cap
emerging” metals companies. We
expect to write on both. One of our
clients is a In February 2007 in Prudential Equities Group’s final months before June 6, 2007 shutdown we initiated coverage of Dynatec and FNX Mining, based on Dynatec’s valuation at two times estimated 2010 earnings at $9 nickel and $7 cobalt that were less than 50% and 25% of then-current spot prices and FNX Mining’s superb geologic opportunity, rising output and valuation. It was easier to write about “one asset companies” than complete a report on the very large and diverse CVRD, for example. We also “knew” both companies as Pbelps Dodge used to own Dynatec’s and Inco FNX Mining’s key assets. We have initiated coverage on three “new companies” as John Tumazos Very Independent Research, LLC. These include General Moly, Inc. (renamed from Idaho General Mines), Duluth Metals and Polymet Mining. Further, we recently visited Century Aluminum and CVRD but have not completed those analyses. Century Aluminum is not a “new relationship” as DLJ was the co-manager of its IPO in 1995, we have visited each of its smelters over the years and wrote about it in 1995 and 1996 as an analyst. We may show a tendency to write reports more easily about “single product line companies,” such as Century Aluminum, since it is easier to “finish the report.” We will write more easily when a company is transparent and easy to understand. Our second employee, Subrina Mahmood, has been assigned to meticulously study the very large diversified mines for which staying abreast is a very tough problem. The three “no revenue” companies are a sort of analyst’s heaven. Since there is no revenue, we do not have to worry about a quarterly earnings mistake for years. Operating costs, ore grades, tonnage throughput and other worries are not “day-to-day” issues. We invite your feedback as to what you most want us to write about. Are our tables readable or too small?? Are we too detailed ? Feel free to request and we will email our excel spreadsheets to our paying clients We have enjoyed every client interaction, including a
special request form the legal department of one large firm which wanted us to
certify in writing that we would not contaminate their computer systems or
send them a “Trojan horse.” My
father came from one of the northeastern Aegean islands just southwest of the
site believed to be We skipped traveling to football games this weekend to deliver to you our three reports on the Duluth Complex mineral belt. While our contract reserves the right to take four weeks of vacation, in reality we have worked every day since my prior employer shut down June 6th. It is a lot of fun working these days since we have really good clients. We have received many checks from unusual names of soft dollar converters we had not heard of. Reading some back mail yesterday I came upon a large check dated September 20th that I put in my personal mail that fortunately was not trashed as “junk mail.” We will phone those of you that have responded favorably in recent weeks to double check that we did not inadvertently trash envelopes from unknown companies that our subscriber clients use to pay us. Faithfully yours, John C. Tumazos |
Copyright © 2008 John Tumazos Very Independent Research,
LLC
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