The CFO is an ex-geologist, and has worked as an analyst for Goldman Sachs.
His finance qualifications are via a diploma from Kaplan, (formerly the Securities Institute), with most online courses costing up to about $3,000. You can look them up online.
NML may better utilize the CFO as a business analyst, similar to his role at Goldman Sachs, which from past experience would also suitably fit his high quality credentials, though I'm sure he is capable of the CFO job.
The MD here also holds a diploma in finance from Kaplan (formerly the Securities Institute), so here is a link or connection between the MD and CFO. Both are also former geologists.
The technical director (former MD) is also a geologist, so they are well covered in terms of geology.
Non-executive director Campbell-Cowan is a chartered accountant, and was CFO for St Barbara, and also worked for Newcrest and Western Mining. He is very experienced. Interestingly, he also holds a diploma in finance from Kaplan (formerly the Securities Institute), so there is a link here between all three men. In any event, he and the CFO should have the experience, when coupled together, to handle the CFO job here.
A couple of issues seemed to have happened.
First, it's not a premium time to raise capital in Australia in June, the month prior to the EOFY, because it's tax loss selling season, not buying season.
Secondly, they struck the beginning of the rate rise cycle, and inflation, which is unlucky timing.
Thirdly, they raised after a Labor victory in a federal election, always a difficult time for resource companies.
Six months ago was the time to raise, when many other small caps were doing so quite successfully. Other factors like Covid have affected everyone. The gold price has been reasonably steady at around USD $1,800, so is not a factor. They also look to have a couple of major shareholders who (from time to time) may not participate in all capital raises.
I'm sure they did due diligence on Mt Carlton.
One of the solutions here for them, may be to go back to Evolution and other major shareholders, and negotiate their participation in the SPP if the retail offer is less than optimal. These discussions may be had at some time, and if successful, would probably be seen by the market, the sophisticated investors, and the funds, as a good result.
Further support from Evolution may be appreciated.
On the face of it, when you look at the board and management, it seems like a very solid team. The question then becomes one of resource, is the gold there?
It looks like they have a bit of work to do, and if they fail to raise anything substantial from this SPP, then I'd assume they'd have to (potentially) switch into a capital preservation mode until sentiment turns.
There are other potential solutions, but for now, probably left to discussions in later posts, let's see how the SPP works out first. I'm presuming the close date may be extended.
Gw
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