by William (Bill) Campbell, Conner
A prime indicator for the success or failure of a business enterprise is termed the “Current Ratio”. This is simply that the business have twice the cash reserve required to pay current operating expenses. Mr. Osterman, and those associated with him, are very aware of this basic function of financial analysis and have made every effort to prevent any determination of the current, or projected current ratio. This is indicative of several facts. First, that a primary operating principal of their proposed operation is concealment and, logically, manipulation. This is the first warning sign, there are others. The sequence of events that could reasonably be expected to take place are as follows:
The restricted working capital will require a cash flow they cannot meet. Hence they would be forced to rely on revenue from current processing or the injection of capital from a new source. There is neither. The ore will be stockpiled at a location within the valley where the radioactive dust and asbestos fibers will contaminate a large area due to prevailing winds. Radioactive and asbestos contamination increase.
Heavy lift, rotary wing aircraft (helicopters) have very high operational and maintenance costs.
The projected reliance on such aircraft speaks to a very high cost element central to the operation. Once again, there is not the necessary cash reserve to maintain a critical function. Loss of the ability to extract the ore would lead, then, to an accumulation of ore at the operating site. Airlifting is a high risk activity with mishaps a common occurrence. Additional environmental stress.
As the scheme falters, public awareness grows, profits and potential investors are non-existent.
Costs continue their upward climb as efforts are made to compensate for organizational shortcoming and planning deficiencies. Those systems installed to control environmental damage will fall into disrepair. Comprehensive ecological damage will result. The water table is contaminated. Additional environmental stress.
Once the operational and financial faults are revealed the proposed scheme will be seen for what it is. Meaningful analysis having revealed what lies beneath the surface (pun intended).
No matter how the elements of the operation are positioned, the end result is failure. The Bitterroot Valley and all it entails will have been permanently damaged for a lost cause.
YOU CAN PREVENT THAT.
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