Ann: Mt Alexander - Exploration and Development Update, page-58

@Paavfc ... You would be better off.

Over the last 4 years all the 'success' has raised the Mcap from ~$35M to ~$50M today, yet all the longer term shareholders have seen the share price fall from ~14c/sh to the current ~9.4c/sh, so a loss overall.

A company can be 'successful' in a technical sense by finding a resource and taking it to mining, yet it is possible for shareholders to lose out along the journey. I've seen companies where management kept the cap raises going with massive dilution and the company eventually taken over, having gone from explorers to miners (or near miners), yet longer term shareholders lose because the takeover price per share was below their purchase price.

What good management does is build the value for the long term holders, by adding extra value with every cap raise. So far the prior cap raises have not added value for existing holders, based on the current falling share price.

Management here get paid big dollars compared to many other small exploration companies, yet they have not performed commensurate with their total remuneration over the last few years.

Management are not employed to drill deep holes that some shareholders were in favour of, they are in their positions to add value for all shareholders, by making the best decisions to add value. That response from JP smacks of we are trying to keep everyone happy by doing a bit of everything. For me that is the fast way to the next cap raise instead of adding maximum value with existing cash before the next raise.

The path to mining any shallow resource here is still going to take a long time and cost a lot of money, meaning lots of cap raises, plus possibly doing deals for a percentage of the mine (after allowing for WSAs existing 25% ownership), with a currently falling share price.

The more I look at this, the more it looks like a lifestyle management company, with management earning big dollars by making all the right noises but year after year going along happily raising cash and trying to keep as many shareholders happy by drilling here there and everywhere, but not adding any value for long term holders.

Part of market rules for directors is continuous disclosure of results. I've not seen any results from all the Strickland resource drilling that was completed in Q2. The lab results for this drill program should be back even if the resource estimate is not complete, so where are the results management?? Why have these results been hidden from shareholders??

So far the deep drilling at West End has been an abysmal failure, but there are high hopes for the next lot of drilling. What if the model is incorrect (happens all the time in geology), and the next deep drill holes are the same result as the last ones?? (The odds of results being the same as the last ones are a lot higher than different results IMHO).
Where do people think the SP will be then?

Sorry for another long rant, but I'm basically angry at myself for not selling more shares at 12.5c a few weeks ago when I did sell 75% of my holding, I should have sold 90% (I still hold a couple of hundred K, and a total loss will only erode last years profit from SGQ, so no real harm to me, but poor result none the less). I wanted to keep some for interest, but the more I research everything here, the worse it keeps looking, not the ground, but the exploration of it!!