I like RM as a person, but to quote him ...."this is not about personalities ...it's about business" (or words to that effect -in reference to SMM actually).
At the Brisbane meeting I DID ask RM (respectfully) if he would consider reducing his salary ...or converting part of it to shares - and the reason I gave is that at this point in time, the company can't afford such high expenses while there is no commensurate income.
I understand there are huge risks in exploration and mining, but some those risks can be minimised by being frugal, and that doesn't appear to have been a concern for management over recent years.
The largesse being shown by the company in remuneration and also in transfer of company ownership as the SP increases (by way of options) may not be seen in a favourable light by either the landholders or the SIG -I'm sure these guys also do their DD. Issuing options also encourage investors to dump the heads at any profit and keep the options as free carried -thus encouraging SP volatility.
Now there is more dilution and more options (have to re-do my graphs again
and STILL we don't have a significant cash-in-hand buffer for our working capital deficit.
Is our current payables actually RM's wages? ...and does this mean that he is actually un-sackable (if push ever came to shove) -because the company doesn't have the cash? (I'm not suggesting this course of action) I'm just saying that it isn't prudent management or governance for a company to be in this position (if that is the case) -ask the holders of TON -they learned.
Also, none of us know when our time is up (ref: SDL tragedy) -what succession or contingency planning do we have in place?
In the short term my concern is that (sans Isabel or another deal) we only have SJ drilling related expenditure/results (with first assay taking 4-6 weeks?) and nothing else to drive the SP.
Although everyone strongly anticipates getting Isabel back, there is no iron-clad guarentee and sovereign risk is a contingency ...we were pretty sure about the CoA too.
The PON looks like its continuing to head in the right direction and this gives us the back-up for company value that SJ will be viable even if the grades are around 20% lower as suggested by some.
I will look to load up again on AVQ, but I don't think the time is now -but truly I don't know ...how would I know when I don't trust some of the rampant info being touted (esp prior to the cap raise -which now feels like a P&D). Isabel could be tomorrow for all I know.
Once bitten twice shy ...and the recent volatility appears to vindicate some of my concerns (and the concerns of many LT holders too).
Cheers,
SJB
