Dear Shareholders, I'm Mick Stroud Chairman of your company.There is a lot of false info being stated on this website that management believes has to be addressed.The main protagonist appears to be under the alias of mackum8.That particular gentleman I believe is a salesperson based in Hong Kong who regularly phones the company.For simplicity's sake I will address some of his misrepresentations one at a time.He has stated "the company(original technology) was sold for $8M" that is simply untrue. THE FACTS: The original technology Co was sold for around $1.9M to a UK based company. That company folded within 12 mths. When the board was changed and I moved to executive Chairman in mid 2008, the Co had net assets of around $8M & no projects.Today we have $20M in audited net assets, 2 great projects in Indonesia currently being drilled and coal tenements in Qld. All our tenements are in the books at cost.Further, the Company has returned record net profits over the past 2 years of $4.6M and $6.1M respectively.All this has been achieved in the environment of the GFC crisis.The board believes the company is now well set up to bring real value to shareholders in a difficult market.I urge current shareholders to be patient for a little longer and you will see real value from investments put in place over the last 3 years. Mackum8 states "Carabella shares were a fluke".This statement is simply naive and untrue.THE FACTS: Yes management bought tenements through a merchant banking group from Mr Byrt.With further investigation we found representations to be less than accurate.We settled that investment by taking 7M shares in Carabella pre float plus $1.2M in cash post float. Any experienced business person would tell you this is not a result that came from a fluke.This action took 14 months to achieve not 4 years as stated by muckum8.The board independently purchased 8M Carabella shares from the then liquidator of Ansett Resources, pre float, for 15cents per share, out manoeuvring a number of large corporate groups in doing so.The final 7.8M shares were also bought by buying a secured debt from a 3rd party pre float. All these transactions took a great deal of calculated risk and a lot of sensitive and opportunistic negotions that ultimately rewarded our shareholders with around 23M Carabella Shares.An absolute game changer for your company. FACT: I own 31.13% of the company, not 70-80% as mackum8 repeatedly states. There is simply no overseas secret account or clandestine voters. DIVERSIFICATION STRATEGY:Yes the board took the view that to safeguard shareholders interests we sell shares and convert them into less volatile assets.Yes the board chose to invest in the vineyard land asset, offices and further land.The vineyard was a defunct managed investment scheme which the board believed offered excellent value. The offices and land purchases have all appreciated in value.We make no apologies for selling Carabella shares from $1.80 down, as stated in our annual report at an average sale price of $1.32 and converting that cash into less volatile assets. Those same shares were trading at 38cents last Friday.I believe this simple example justifies the board's decision.The board will divest these assets as the company's priority change.Mackum8 is well aware that all assets will be moved on.I also think it important to let shareholders know that mackum8, the constant critic of your company, was continually on the phone abusing myself for selling those shares for around $1.70 with off market crossings because, in his opinion, they are going to $4. Why has he not seen fit to mention this in his constant barrage on this website.Mackum8's understanding of how options actually work has been well documented by other shareholders and it demonstrates either his total lack of integrity or complete lack of knowledge.It maybe both!It is important to realise that as a board we believe our investment in Indonesia is very exciting, 3 years in the making.We have started drilling in very difficult conditions and will release results as they come through.We believe shareholders won't be disappointed. Our strategy of divesting assets when required will be followed through.As a board we will continue to make decisions in the best interests of shareholders.If shareholders are not happy with our performance then I would suggest they sell their shares and seek another investment. Uninformed misinformation is not in the interest of our shareholders.
WAL Price at posting:
14.0¢ Sentiment: None Disclosure: Held
