Discussion
Seems Tony isn't the mining God that he was presented as in previous series - several f
ck ups on his part so far this series (dumping logs into the pond, making Kevin wait for Gene to change the spindles and giving Parker a blanket "No" on the royalty rates).
The Hoffmans are still playing at mining and seem to have learnt nothing to date, except how to make interesting TV (lots of drama).
No sign of Ashley in this episode and talk of getting rid of rock truck drivers with the frankenstein conveyor belts is interesting though!
ck ups on his part so far this series (dumping logs into the pond, making Kevin wait for Gene to change the spindles and giving Parker a blanket "No" on the royalty rates).The Hoffmans are still playing at mining and seem to have learnt nothing to date, except how to make interesting TV (lots of drama).
No sign of Ashley in this episode and talk of getting rid of rock truck drivers with the frankenstein conveyor belts is interesting though!
Edited by youngsyr on Thursday 3rd November 14:21
youngsyr said:
giving Parker a blanket "No" on the royalty rates
I wonder if it's because he has other miners on his claims who have the same deal and he's reluctant to change the deal because others would want the same? Alternatively it could just be that for TV it was seen as a good way to justify Parker's second operation
afrochicken said:
youngsyr said:
giving Parker a blanket "No" on the royalty rates
I wonder if it's because he has other miners on his claims who have the same deal and he's reluctant to change the deal because others would want the same? Alternatively it could just be that for TV it was seen as a good way to justify Parker's second operation
However, the bottom line is that on his previous stance of insisting on 25% he would have got zero additional gold this year only to get that additional gold next year at the lower 15% rate. It would have made business sense for him to cut a deal at 20% or even 17.5%, not only would he have more gold this year, but he would have got the gold at a higher royatly rate than by forcing Parker to wait a year to mine for it.
Did anyone catch Parker's information on his running rates - the frankenstein conveyor belts cost something like $1,200 per week to run in diesel alone and his rock trucks are 3 times that, so his rock trucks cost $3,600 per week. Multiply that for a 6 month season and you're at $86,000 per truck per season just on fuel. Makes it even less likely that any of them are actually making a profit.
Maybe someone can help me out on this as I can't quite work it out..
Why doesn't Tony have a higher rate for the 1st few thou ounces and then reduce the more they get?
Like 25% for the first thousand, 20% for 2nd thousand, 17.5% for third thousand and then 15% for everything over three thousand..
They'd work harder trying to get as much over the 3k as possible. What am I missing?
Why doesn't Tony have a higher rate for the 1st few thou ounces and then reduce the more they get?
Like 25% for the first thousand, 20% for 2nd thousand, 17.5% for third thousand and then 15% for everything over three thousand..
They'd work harder trying to get as much over the 3k as possible. What am I missing?
I'd imagine setup costs.
First is getting all the plant and water supply setup and sorted.
Then, the seemingly enormous task of clearing the overburden.
Once that's done, it's 'just' a matter of shovelling paydirt through the plant, so presumably costs drop.
For someone taking over the claim, the first thousand ounces seems to be make or break. Once that's done, then the infrastructure costs are covered and then you're into operating costs, so in theory higher profit - which Tony wants his piece of.
First is getting all the plant and water supply setup and sorted.
Then, the seemingly enormous task of clearing the overburden.
Once that's done, it's 'just' a matter of shovelling paydirt through the plant, so presumably costs drop.
For someone taking over the claim, the first thousand ounces seems to be make or break. Once that's done, then the infrastructure costs are covered and then you're into operating costs, so in theory higher profit - which Tony wants his piece of.
ikarl said:
Maybe someone can help me out on this as I can't quite work it out..
Why doesn't Tony have a higher rate for the 1st few thou ounces and then reduce the more they get?
Like 25% for the first thousand, 20% for 2nd thousand, 17.5% for third thousand and then 15% for everything over three thousand..
They'd work harder trying to get as much over the 3k as possible. What am I missing?
I think it's to protect the claim owner from the miners finding a mother lode and raking it in at lower rates. Say they aim to mine 3,000 Oz using your royalty rates but actually mine 6,000 Oz due to finding a particularly rich deposit - the claim owner loses out and only gets 15% of very rich ground.Why doesn't Tony have a higher rate for the 1st few thou ounces and then reduce the more they get?
Like 25% for the first thousand, 20% for 2nd thousand, 17.5% for third thousand and then 15% for everything over three thousand..
They'd work harder trying to get as much over the 3k as possible. What am I missing?
Sway said:
How much land has Tony got? Seems to be able to rustle up a claim at the drop of a hat, multiple times over the various series.
Not sure, but he's been doing it a long time, if he was buying the land when Gold was at sub-$400 an ounce and sat on it, he'd be doing very well now. You could say, he's sitting on a Gold Mine (boom, tish), but trying to get a real insight into how the industry work from watching Gold Rush is hard work. In one of the 'Specials' when it showed Tony's back story, it sounded more like he was an employee of a major Gold firm rather than a one-man industry like the series shows.
P-Jay said:
Sway said:
How much land has Tony got? Seems to be able to rustle up a claim at the drop of a hat, multiple times over the various series.
Not sure, but he's been doing it a long time, if he was buying the land when Gold was at sub-$400 an ounce and sat on it, he'd be doing very well now. You could say, he's sitting on a Gold Mine (boom, tish), but trying to get a real insight into how the industry work from watching Gold Rush is hard work. In one of the 'Specials' when it showed Tony's back story, it sounded more like he was an employee of a major Gold firm rather than a one-man industry like the series shows.
With regards your second paragraph, I do remember that the bulk of his firm's operation is a huge tract of relatively low yield, but very high throughput. I got the impression that's where his 'living' is made (probably not a vast sum as the costs looked staggering) and the stuff we see on the show is his 'playtime'.
T16OLE said:
With such Hughes figures involved, how to claim owners avoid "secret clean up's".
This is the key for me - there seems to be so much scope for abuse in these operations, but I guess overall you can see how much ground has been processed, so if a miner is continually achieving lower yields than expected then they get kicked off the claim and a bad name in the industry.In reality I suspect it's a lot more scientific, with a lot more drilling/testing to know much more precisely how much gold is in the ground and so the scope for short changing the claim owner is much lower.
Short article on this link, giving some biography to Tony.
http://www.miningandenergy.ca/rockstars/article/fo...
http://www.miningandenergy.ca/rockstars/article/fo...
On the security side - there's a lot online regarding the Hoffman's and their often suspiciously low cleanups...
Theory is along the lines of:
Surveyed land showing really very good yield.
Mats look good for gold when taken off the plant.
Jack disappears on his own into the gold room.
Everyone sat round the fire and Jack rocks up 'it's not good guys, it's really not good'.
Everyone's shocked, Todd carries on spanking money left right and centre, and so on.
Not suggesting there's truth to it, but there is a lower level of scrutiny seemingly in the Hoffman's gold room.
Theory is along the lines of:
Surveyed land showing really very good yield.
Mats look good for gold when taken off the plant.
Jack disappears on his own into the gold room.
Everyone sat round the fire and Jack rocks up 'it's not good guys, it's really not good'.
Everyone's shocked, Todd carries on spanking money left right and centre, and so on.
Not suggesting there's truth to it, but there is a lower level of scrutiny seemingly in the Hoffman's gold room.
Sway said:
On the security side - there's a lot online regarding the Hoffman's and their often suspiciously low cleanups...
Theory is along the lines of:
Surveyed land showing really very good yield.
Mats look good for gold when taken off the plant.
Jack disappears on his own into the gold room.
Everyone sat round the fire and Jack rocks up 'it's not good guys, it's really not good'.
Everyone's shocked, Todd carries on spanking money left right and centre, and so on.
Not suggesting there's truth to it, but there is a lower level of scrutiny seemingly in the Hoffman's gold room.
No chance they aren't on the level, they are religious men remember Theory is along the lines of:
Surveyed land showing really very good yield.
Mats look good for gold when taken off the plant.
Jack disappears on his own into the gold room.
Everyone sat round the fire and Jack rocks up 'it's not good guys, it's really not good'.
Everyone's shocked, Todd carries on spanking money left right and centre, and so on.
Not suggesting there's truth to it, but there is a lower level of scrutiny seemingly in the Hoffman's gold room.
youngsyr said:
This is the key for me - there seems to be so much scope for abuse in these operations, but I guess overall you can see how much ground has been processed, so if a miner is continually achieving lower yields than expected then they get kicked off the claim and a bad name in the industry.
I.
TODD HOFFMAN FFS!!! I.
youngsyr said:
ikarl said:
Maybe someone can help me out on this as I can't quite work it out..
Why doesn't Tony have a higher rate for the 1st few thou ounces and then reduce the more they get?
Like 25% for the first thousand, 20% for 2nd thousand, 17.5% for third thousand and then 15% for everything over three thousand..
They'd work harder trying to get as much over the 3k as possible. What am I missing?
I think it's to protect the claim owner from the miners finding a mother lode and raking it in at lower rates. Say they aim to mine 3,000 Oz using your royalty rates but actually mine 6,000 Oz due to finding a particularly rich deposit - the claim owner loses out and only gets 15% of very rich ground.Why doesn't Tony have a higher rate for the 1st few thou ounces and then reduce the more they get?
Like 25% for the first thousand, 20% for 2nd thousand, 17.5% for third thousand and then 15% for everything over three thousand..
They'd work harder trying to get as much over the 3k as possible. What am I missing?
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