15% of anything coming out of the Sinker Tunnel goes to Bissell/New Vision. 15% of anything coming out of the Sinker Tunnel goes to Goldland. That leaves 70% for SFMI, but they have all the expenses. Almost all of the claims SFMI owns are on the top of the mountain. Now you know why they are doing the drilling in the Sinker Tunnel first instead of on the top of the mountain........more money for PQ. I asked PQ specifically at the last shareholder's meeting about the royalty for ore removed from the Sinker Tunnel owed to Goldland. He stated, in no uncertain terms, that Goldland would receive a 15% royalty for all ore mined through the Sinker Tunnel.....more money for PQ.
Let's just say, for ease of calculation, that 25% of revenues will be used for expenses. Other than the bloated expenses for compensation to PQ and company, GHDC has no expenses. That leaves SFMI 45% of the total revenues as profit potential. There are 271 million shares outstanding of GHDC and 676 million shares outstanding for SFMI or a ratio of 2.49 shares of SFMI for every one of GHDC. A ratio of 3 to 1 means that the EPS for each company is equal (45% divided by 15% equals 3). The problem becomes one of dilution. Most of which is and will continue to accrue to SFMI. This is the reason GHDC is becoming more and more attractive to be invested in. Hope this helps.
Semper Fi,
Bluesideup
