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March 2011

Who gets hurt? #2

Another shareholder story:

"All a game to some, but to me Birch mountain was part of my retirement plan.  

. . . I was retired for less than one year before returning to work. It was my only option. Thank God I was able to find work at 61 years of age. I have learnt the hard way that there are very greedy people in this world and they don't give a damm if you have enough money to survive on, in good health or poor not able to pay for your prescription drugs. The government really needs to pay attention to this problem. So many people are going to be turning to assistance in there retirement years because they have been swindled out of their hard earned retirement  dollars."


Who gets hurt?

What if a corporation starts acting like a greedy, misanthropic, self-centered spoiled child, who doesn't want to play by the rules? Who gets hurt?

What if a corporation exploits the people in an industry that they dominate for greed? Who gets hurt?

What if a corporation creates an unfair game, coerces you to play, and then manipulates the game so the corporation wins? Who gets hurt?

Unless you have been living in a bomb shelter the past 4 years then you know who gets hurt - the worker who loses their job, the community who loses their industry, the entrepreneur who goes out of business, investors who lose their retirements - all leaving families to suffer.

Here's one person's story:

"After my husband committed suicide I couldn't afford to keep my house. I sold my house and paid off debt and put most of what was left of the money into Birch Mountain shares to try to grow it for a down payment on a more affordable house. This was right before the stock plummeted from its high. By the time I sold Birch in a panic thinking I would lose everything I barely had enough money to buy a decent car. I was devastated. I decided to buy a mobile home, which cost about as much as a decent car because I thought it was at least a little more dignified than living in a car. I've started over and put it behind me but I can't help but think that my life would have been better."

Do you have a story about your Birch investment? We want to hear. Send it to birchmountain@hushmail.com.

 


Welcome

Attention returning readers: Sidebar updated to include Judge Perell's decision on the motion hearing.

If you are new to the site, Welcome!

You can get up to speed on the lawsuit by visiting the link for Statement of Claim in the yellow sidebar to the right under the map.

 


Mark this date . . . April 20, 2011

For anyone wishing to attend the first hearing for motion of jurisdiction it will take place on April 20, 2011 at 10:00 am at Osgoode Hall, 130 Queen Street West, Toronto, Ontario. It will be heard in open court. The specific courtroom number will be posted at the courthouse entrance on the day of the motion. Photos - Osgoode Hall outside, library.


What is the asset worth?

The AMEC report in 2006 said that Birch Mountain had 1Billion tons of high quality reserves, a 70 year mine life, and 10M tons per year capacity and additional reserves! 

Amazing!

Brookfield is saying the same thing.

xBrookfield Asset Management's new brochure:

1 Billion tons of high-quality reserves

50 Year mine life

10M tons per year
production capacity


In Brookfiled's own words they describe the asset:

"HAMMERSTONE CORPORATION - Mining company and producer of high-quality limestone in the heart of the Canadian oil sands region. Principal supplier of construction aggregates in an industrial region with significant current and future demand, increasingly limited competition and high barriers to entry. Over one billion tons of reserves and more than a 50-year remaining mine life, with additional mineral rights covering 700,000 acres adjacent to the mining operations. (Empahsis added)

Source: Brookfield Special Situations Group Brochure: http://www.brookfield.com/_Global/1/documents/relatedlinks/2975.pdf

Questions:

What’s a billion tons of high quality limestone reserves worth today? 

$2 Billion (NPV)?

 

What’s the Future Value of a 50+ year quarry?  

$xxxxBillion?

 

What was the last known Birch Mountain share count reported (before dilution)?

Answer:  84,180,737* as of December 31, 2007.

 

What was the “acquisition” price? 

 

What would the share price be worth today?

…but for...?

 

*Excerpt from page 49 of Birch Mountain Resources Annual Report filed April 3, 2008:

ITEM 7:  As of March 1, 2008, Birch had 134 registered shareholders of which 76 holders had an address of record within the US owning common shares, representing 15.8% of Birch’s outstanding common shares.  As of December 31, 2007 Birch Mountain reported 84,180,737 common shares outstanding.

To the knowledge of Birch, as of March 1, 2008, there are no persons or entities who beneficially hold, directly or indirectly or exercise control or direction over, more than 5% of the voting rights attached to the issued and outstanding common shares of Birch.

Source:  U.S. SEC Filing 20F of April 2, 2008, Birch Mountain Annual Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934.

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If you have not already done so, please send us your name, physical address, citizenship, and share count and any questions to birchmountain@hushmail.com. Please donate. We're working for your recovery.