Yesterday my patience finally ran dry with management and I emailed the company my personal phone number and asked if WW could call me to answer a few concerns I had with BGS. In good faith WW called me late afternoon and we spoke for about 15-20 minutes on several points and concerns I and several other HC posters had. (Please take the time to read the below)
My first question focused on "The Gas Super Fund" and his previous dealings with them. WW said they were a large investor and our current number 1 shareholder and had previously invested in companies he had been a part of, he did not deny that at all. I raised my concern of "investor followings" and how they purchased after our Lith acquisition. WW raised a very valid point that The Gas Super Fund had bought in after we had acquired the Lith land and after everything was public knowledge, also at that point in time no-one knew of the potential resource that was underneath the surface (everyone can speculate but until the drill results are out it is merely speculation). I suggested it just seemed "coincidental did it not?" and his reply was very true saying that "anyone could of purchased shares at market price at the time as lithium was heating up they obviously saw it as a chance to make money like many other investors".
I raised the point of the "Notice of substantial holder" not being lodged for 6 months, WW said they had reminded "The Gas Super Fund" (which I can confirm from a conversation with our company secretary some 3 weeks ago) and thought it was poor reporting on their behalf but there was nothing BGS can do about it.
We spoke of the under writing agreement with the Merchant and how many saw this as a "sweet heart deal". WW was very specific that those options were offered to existing shareholders and were not fully subscribed, something which he couldn't believe. WW raised the point that the Merchant was making a bold move at the time as this was essentially the "left overs" that was offered and nobody wanted. The Merchant was obviously taking a risk at the time in which I agree. In my opinion hindsight is a beautiful thing when you look at the results we have got but you have to agree that at the time nobody wanted them.
I raised the point of transparency and not being able to get a Top 20 shareholders list and how this had frustrated several holders myself more so than others. I said that as the company has a share register they can see who is buying and selling, so to assume "they don't know" is incorrect. He said he would personally get one for me if need be but if they are answering requests like this everyday it would slow down the happenings of the company. I told WW I had received one earlier in the day from the company so not to worry. (Note: WW and I agreed not to publicly share the Top 20 list, it would be improper conduct of myself as I requested it for personal use). I can say however that there has been no "gas leak" or substantial changes that need to be reported, for this I must say that I was wrong to assume what I did and apologise, but as my right to see a top 20 shareholder list I just wanted clarification to which he agreed was justifiable.
I stated the fact that it seemed that many were not happy with what has previously happened with the company and re-election is this year for him. WW asked if he should be concerned? to which I replied I can only speak for myself and my own research and findings and his answers so far had been more than adequate. WW stated that it was very easy for shareholders at this point in time to look at our deposit and see what we have and think we are worth much more. He stated that before any drill results came out and before we had $8 million in the bank it was necessary for the company to take such steps. WW believes that all the remaining options are paid options (with they are) and will raise our cash position to around $12-$13 million and this cannot be seen as a bad thing long term.
WW said there were "Several keyboard warriors" out there to which I had a laugh (probably referring to myself no doubt) who would rather type online rather than seek the facts. I made clear that all the points raised by these so called "keyboard warriors" were valid concerns and believed they would be once again raised at the AGM so be prepared to answer questions. We spoke of my personal investment and I stressed no matter how big or small someones investment is they deserve clarity for needed for peace of mind and WW could understand.
I asked if the directors had considered buying shares on market to install some confidence in both BGS and them. WW stated that in April the directors took shares in lieu of cash payments and had options coming up at the end of the year (December) which will be paid for. WW raised a very valid point in that when a director buys shares they cannot sell them as it is seen as a vote of no confidence in the company. WW said the options will be bought (even though at a discount to market price, 20c I believe) and hopes this shows managements commitment to the company.
I said that our social media marketing was lacking and I believed that it needed improvement like many others. WW stated that we are not a tech company and we are an explorer in Mali and this has to be understood. I noted that other companies (I will not disclose which companies as BGS holders may also hold these companies) had been promoting heavily and had much lower grades and intercepts compared to BGS and a much higher MC. WW stated that he didn't believe many of them would make it to mining and was extremely confident that BGS will go all the way. I still personally believe that a Facebook and twitter page could be beneficial to help share results, comparisons and videos. (BTW: WW did note that we are in the latest Galaxy Resources investor presentation on page 9 as an "explorer" so we aren't completely flying under the radar).
I then brought up the fact that our MC is at $60 million and we could easily be bought out at a premium. WW said at the moment there is no consortium within BGS that could stop someone coming in with a hostile takeover. I said that this is a very real possibility given our resource to which he agreed. I asked what would happen in that situation. WW stated that another company would run the figures to see how much BGS is worth at mining (minus our cash in the bank) and discount it heavily and make a bid. He said if that was to be the case he expected it to be countered as we have a very premium deposit.
WW answered all my questions and queries openly and stressed that it is easy to look back now and ask questions about the past but at the time it was necessary moves for the company. WW did have valid answers for every question I had and I didn't hold back on questioning.
I would like to thank WW for taking the time and hope this answers some of the questions that shareholders have and answers any misconceptions. As I have always stressed this is about transparency to me as a shareholder and everyone is entitled to have opinions (Good or bad) and views on certain issues/people. I hope this has helped other posters that wanted clarification and to those who didn't I hope this has re-affirmed your position in BGS and management.
Overall I must say my discussions with WW were very good and positive (although he did seem quite agitated with me at first and that is fair enough when questioning someones credibility).
PS: At not point in time did we speak of MM, JORC estimates, Scoping studies, gold deals or any price sensitive information or potential happenings if anyone is wondering. All that was asked and answered were the concerns that have been posted on HC.
(20min delay)