LOW
Firstly, the present informal arrangement that SOPerior has struck with Lippo Group-backed Tamra Mining in Milford is unnecessarily opaque. Secondly, the dearth of updates from the company over the last year regarding pilot plant debt financing is shameful. In light of these factors alone, SOPerior’s recent down-rating is justified.
Getting into bed with the Lippo Group, firstly, is a generally bad idea, as Lippo is known for its rapacious business practices. If financing is secured by SOPerior over the next handful of quarters, one must pray that it isn’t from Lippo. That financing would likely result in a management appointment, total financial control, bankruptcy and the acquisition of Blawn Mountain by Bill Clinton campaign fraudster James Riady’s Lippo China Resources (LCR).
This isn’t to suggest that SOPerior is in any way presently in cahoots with Lippo or any of its affiliates, but Riady is on the prowl in the neighborhood and has already demonstrated suction in Milford and environs.
Regarding SOPerior’s proposed pilot plant: LCR currently owns the plant’s debt, which it bought in 2016 at a hefty 31% discount, and which gave it a 28% equity interest in the Waterloo-owned plant (LCR subsidiary!), which would clearly enable LCR to exert undue and likely detrimental influence on SOPerior. One can surmise that it was the intention of LCR to lure SOPerior into the same trap in which CS Mining found itself ensnared in 2011.
We are of the earnest opinion that it is of paramount importance for SOPerior’s Board to reconsider its proposed partnership with LCR, presently masquerading in Milford as Tamra Mining. We believe there are safer means by which to secure debt financing, and that Blawn Mountain — a true national resource treasure — should remain out of the reach of foreign hands.
5 Comments
Hi Tom,
Do you know if there’s any substance to the rumors regarding foreign investors seeking to buy blawn mountain?
/Thanks
Carl
Hi, Carl,
I do not. But the best medium in which to grow rumors is a vacuum. And until management steps up to dispel them, rumors will abound.
Tom
Hi Tom,
If it turns out not to be a partnership with Lippo Group but anyone else would you be bearish again on this company? Also it seems as though they are more interested in producing alumina rather than SOP. Would you be just as bearish with that approach?
Rob D.
Hi, Rob —
Firstly, nothing will alter our present stake in the company. We might not like the news flow or absence of news flow, but we remain steadfast shareholders. I can’t emphasize that point enough: We love Blawn Mountain.If it turns out that a partnership does not involve Lippo Group, our faith would be boosted and we’d continue to add.I hope this was a helpful reply.
Sincerely,
Tom
Tom,
Wondering if you’ve kept up with developments regarding Sorperior Fertilizer Corp (formerly Potash Ridge)? You were bullish on Blawn Mountain the property but not if a deal was struck with the Lippo Group which I totally agreed with you at the time however a lot has changed since then. They have entered into a new JV with a yet to be disclosed group but it looks to be moving forward and should be finalized very soon, hopefully within the next few weeks. My research tells me it is likely Peak Minerals which is owned by EMR Capital. I would very much like to hear your thoughts about this possible JV.
Thanks,
Rob D