WhatI believe needs to be done immediately (apologies here as I’ve previouslymentioned these points in a different thread)
1.The new Managing Director must alignhimself with shareholders by buying shares on-market and/or buying up a largeportion of shares in the shortfall of the entitlement offer. He must show thathe is willing to get down in the trenches with the rest of us and show us what type of a leader he is.
2.The remainder of the Board need toreduce their remuneration package by 50% for this coming financial year. Aportion of their package should be in the way of shares. That way there is a greaterincentive for them to work harder to ensure the success of the Company and anincrease in the share price.
3.There needs to be a review/jobsanalysis/re-structure (however you want to call it) of all job positions at theCompany. I call it a 'test of essentiality.' If the job position is notessential to the current operation of the Company, then something needs tohappen to that position. The Company cannot afford to keep burning cash at itscurrent rate.
Take for example the “Project Team”. Itcomprises a Chief Operating Officer, a General Manager - Technical Services andOperations, a Manager - Project Development, a Chief Geologist and a CommercialManager.They have a combined 132 years of experience.Yet the Company is allocating a further $2,320,000 of funding to perform ‘detailed engineering and work packages.’ Seriously?I get the fact that they’ve increased production to Stage 1A+ but $2.3 million seems excessive.
4.Luke stated during the conference callthat potential funding applications can take up to five months to reach anoutcome. Then comes the Final Investment Decision and then we must wait atleast another 12 months until production commences. So realistically, we arelooking at around a further two years before production commences.
How will the Company remain afloat inthe meantime? We will need more capital raises (read further dilution) just to reachthe start of production.
In my opinion, they must dust off theLetters of Intent (LOI) for Direct Shipping Ore (DSO).The project is ‘shovel ready’ so the Company says. So, look at the terms of each LOI and run the numbers to see if we can convert the LOI’s into BOA’s to generate some early revenue.By doing this, it will also improve their reputation as a Company as one that can deliver on projects. Plus, when if further cap raises are required, it will at least show that they’re leaving no stone un-turned to bring success to the project and the Company.
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