GS you know - that was not my argument for evidence the board has not done a good job - why did you not attack my list of where we are on the other thread. There is plenty of evidence:
1. ERM has to take responsibility for appointing KQ - now the the board apposes his appointment without explanation and in what appears to be a knee jerk reaction appoints another "top 20 shareholder" to the board - under normal circumstances they did not have to comment but as they rolled him in they should at least say why they recommend him.
2. Surely if you want to consolidate shares and there is such a huge opposition to it - even articles in newspapers and comments about really unhappy shareholders its the directors duty to address those issues - I know I got a great answer in support of it and put it on HC at least a month ago but they have not even bothered until now and even then they have not taken the trouble to engage the shareholders concerns. If you dont see the need to promote this company even to shareholders - normally the easiest sell than they are not, in my opinion, fulfilling their function as directors.
3. They want to each get $25,000 of shares because of the number of meetings however what they dont highlight is the fact that directors fees for each of them more than doubled already from the previous year.
4. Page 7 sets out how far the company has come - With that list of achievements the most notable of which is a EPS of 0.108cps - I think its happened mostly in spite of them they just had to wait to get to tranche 2 and not spend any exploration money. They did good in fixing the plant . If they cannot convince the market that after all this its great value then the composition of the board is wrong or the audience question the veracity of the results. Before we all get excited they achieved about 80% of this by recognising a deferred tax asset this year of almost $5 million.
5. After all this hard work ... the shareholders have faced another year of substantial decline in share price - yet the directors who have already been rewarded with more than a doubling up of their remuneration individually want a free bonus.
6. Personally - in my opinion - the credibility gap is that its just taken far too long. after the 249D the mandate I believe we all gave was get this company moving - too long for the CR too long to get into the ground to once again be an explorer ...
7. To get a farmin now - in my opinion will just entrench the poor value that this company has - the time for farmins was two tears ago. The valuations of O&G are so low its almost not worth it - now is the time to drill and get success in RGN , then get a loan or do a CR to drill the next at some point the share will respond to success in what it was supposed to be an explorer.
8. To illustrate the point we have to put out a notice about AWE's exploration pointing out how close we are to them. Thats rich because we have not drilled anything for many years.
9. I dont want my directors pointing out how great they are and leaving out additional costs - small point but illustrative of attitude and behaviour.
10. What O&G experience have we got on the board - not enough to be an explorer in my opinion.
11. No empathy from the directors for the history of this company no understanding that the 249D needed the shareholders and that they are all wanting to support the company - to my mind they have used the ignore button on all of us now that they got elected.
12. The company is worth $40.81 Million today yet during the year they raised a total of $19.3 million so really the original business is only valued at $21.5 million - When they took over and told us they wanted to unlock value it had a market cap of $94.4 million. I call that abysmal failure on any measure.
The kicker is the deal with ERM we now have an audit report with an emphasis of matter in that we are cash flow positive but actually cannot repay the ERM loan we did not need to have but chose to have by buying them out of their JV share. According to the note we dont have sufficient resources to repay this ... They told us farmin partners would be there , it was needed ... It has dragged this company down - personally they should fall on their sword , in my opinion , for this failure alone. their idea , their desire we voted it in much like we did in the 249D and guess what its now biting us back.
Sorry but despite the pretty pictures and all the protestations that it will all come together it has not and like most other businesses the directors should be responsible and yet they want a bonus of cheap shares - it really does not sit well with me.
That enough motivation ...
EGO Price at posting:
0.4¢ Sentiment: None Disclosure: Held
