Fri Dec 23, 2005
Kaiser Ownership Blog: Softrock Minerals
    Publisher: Kaiser Bottom-Fishing Report
[Excerpt from a Kaiser Report in 2005]
This report came out the same year that Campbell went into CCAA (the first time).

http://www.google.com/search?hl=en&q="truly+undervalued+but+management+is+scheming+to+steal"&rlz=1W1SUNA_en&aq=f&oq

John Kaiser’s words
“What I look for is structure, meaning that insiders have a significant equity stake in the company, or some sort of sleeper asset. The problem with sleeper assets is that either the macro conditions required to make the asset "economic" are in the uncertain distant future, or they are truly undervalued but management is scheming to steal the asset at the expense of minority shareholders.

The most effective way to steal a sleeper asset is to roll back the stock, let the stock price tank, and then load up on a cheap private placement ostensibly done to "relaunch" the company.

More complicated ways involve doing a merger with a private asset using a puffed up valuation for the private asset that dwarfs the pessimistic valuation of the public company's assets which has been tailored to match the junior's beaten up market capitalization.”  

Benson’s comments:  looks like Nuinsco to me!   They got on the board; they arranged deals that were extremely unfavorable and a rip-off to Campbell shareholders. 

Nuinsco bought 10% of Campbell in a private placement (they still hold those shares).  Then the Board voted to give Nuinsco 20% more of the company in warrants, just because “they deserved it”.  Now Nuinsco’s 2 executives have been kicked of the board.  And now Nuinsco is crying that they are not getting paid.  But a lot of fault lies with Nuinsco to start with!

But it was the Nuinsco’s Operations team that never executed the operations plan listed in the 2006 Prospectus.   We think Nuinsco made this happen, and the Campbell Board of Directors just sat back and did nothing!

Prospectus  (read the words above “increasing production”)

http://www.campbellanalysis.com/files/GeologistReports/

2006 press release (“we just need 4 months!”)
www.nuinsco.ca/press_releases/Nuinsco-campbellreleasefinal Apr24.pdf

You can also read Campbell's April 2006 press release, where “everybody was so sure that it would take just 4 months and $5 million to return Campbell to profitability.  They even mention the “Cedar Bay” deposit in that 2006 press release

Nuinsco was running operations at Corner Bay and Copper Rand – but you can’t get straight answers form Nuinsco Management when you ask them to comment how things could be “off plan” so badly.  

Every quarter in 2006 – 2008 had some dumb excuse why things were not going according to plan.  They would proudly announce that “the new ramp (2006 or 2007) would result in costs savings”, and then no cost savings would be generated.  Same with the Alimak System which is absolutely capable of generating cost savings when used properly (do we need to drag Alimak into this?).   They put in Alimak System at Copper Rand (at a cost of $5 million), wrote about the expectation of "huge cost savings", and then there were no costs savings to be seen.

Every fuck*ng quarter Management would give us an optimistic song and dance, and then they turned around and reported a huge loss. 

But after every quarter - when they did private placement - it was immediately filled or over-subscribed!   What did these institutions know that small shareholder did not know?

Read John Kaiser’s word above.  He has seen this before!

Before Sprott and Nuinsco got involved – the Copper Rand mine was actually producing with positive cash flow, and a copper price of under $2.00, and a gold price of only around $500.

Last two quarters in 2005 --- Very important to analyze

http://www1.investorvillage.com/smbd.asp?mb=9985&mn=1882&pt=msg&mid=2829385

Don’t give me this story about “low metal prices”.  Metal prices were "super high" for 10 quarters, and what kind of results did we get?   I am so convinced that there was a secret back-room plan here!  That’s why the Bashers have spent 3 years and 10,000 message board posts trying to get me to shut up. 

Attention: If you are a (small) Campbell shareholder, and you are not on the phone, writing emails, and/or writing letters, then you are hurting your chances for investment profits.  And you are helping the company screw the mineworkers, because the company says that just lay off the Miners at Copper Rand, and not one of those guys should have lost their job!

Please look up the Canadian Regulatory agencies (like the “OSC”) and contact them on your own.

See the words above from John Kaiser?  He is describing a well known scheme to defraud investors, and Mr. Kaiser has been around a long time.  This article my Mr. Kaiser was written 4 years ago!