To be fair, I believe that I have shown my disagreement with the directors on this forum, in person and at the recent General meeting. However the other SHs disagreed as the vote was clearly for all resolutions. My major issue with the directors has been their inability or unwillingness to get deals done. If ELK had done deals when the POO was high we would not be in the mess that we are in today. By the time Chris was given the green light to farmout out our gas plays at NAPE it was too late as the world was gripped by the GFC. However the result would be very different if they had done this earlier.
My confidence levels have increased since the GM as I felt that the directors had a change in attitude and there was a greater sense of urgency. Davo22 and I asked some tough questions and to the Directors credit they answered those questions sufficiently to give me a sense of reassurance. It was interesting to see the room dynamics as it was very different from the last AGM.
The one thing that still worries me about my investment is that Tony mentioned several times that ELK may raise additional capital to fund phase one of the Grieve project if they cant find a JV partner on favourable terms. Therefore it is critical that ELK get some wins on the board and that the SP is significantly higher than it is today. IMO they should attempt to firm up the Kakadu reserves as Andy mentioned that they could achieve this relatively cheaply and quickly. The problem we have is that Andy is reluctant to spend any money on other projects after the feedback from Radar (call centre) was that SHs want ELK to concentrate on our main asset Grieve. However given the small cost I think they should do both.
Cheers DJ
ELK Price at posting:
11.5¢ Sentiment: LT Buy Disclosure: Held
