should david harley go?, page-13

These posts to oust DH seem like trial by the mob, to me. I fail to see how you are so well informed as to the performance of DH in getting the deal to the position it is now (per the 18 Oct announcement); and I fail to see how you are so well informed as to Mr. Tillbrook's views or intentions on the matter.

So I think it is ill-informed speculation as to what is the best way forward.

If you proceed and are successful in removing DH, then I think that would have extremely negative impacts immediately for Gunson. Posco would most likely put the whole project on hold until a new management team is not only in place, but also has earnt the trust of Posco. This could take months, and would set us back disastrously. Especially if key executives also leave with DH. It is a ludicrous strategy, especially at this time, so close to a final deal. What would we have gained?

Ok, the delays are frustrating. But who of us knows the reality of the difficulties in resolving the issues? I certainly don't and am therefore in no place to arbitrarily say the current MD has to go, and that another MD and management team is automatically going to be better.

Let's look at the major delay we suffered in April, when instead of an expected announcement, all we got was a deferral to August. At that time, there was much angst and many posts that DH should go. Nothing different to what is happening now with all the negative posts. Yet, the real reason for the delay was that POSCO put a hold on ALL new major investment proposals, pending resolution of issues stemming from the change in fundamentals in their primary line of business - iron ore/steel. This clearly had nothing to do with the competence or otherwise of DH and his management team

We are now at a critical stage. There are just too many positive signs to give up hope and change the management team. You only have to look closely at the 18 Oct announcement to see plenty of positive signs right now. Ok, if you are cynical after such a long wait, then you will not believe these signals, and I think that is what is happening with the current trial by the mob. But without full knowledge of the facts, it is dangerous to be cynical. We should instead let the situation play out until end of year. This is not long to wait. Ok, I hear you say, we have been waiting, waiting. But as I allude to above, the waiting from April to August had nothing to do with Gunson incompetence, or Posco doubt on the project - it was an internal Posco imperative affecting ALL their investment proposals, due to external global factors (China and iron ore /steel demand). So, given this, why get so impatient with a wait from August until the end of the year?

I think we can take some confidence from the effects of the global downturn and reduction in Chinese demand, and the fact that mining generally has come off the boil in WA and elsewhere. Not only will it enable a recalculation of mining construction costs as explained in the 18 Oct GUN announcement, but it also will mean labour and other resources will be more readily available. The slow-down in new projects will also mean those projects close to fruition (such as Coburn) will be pursued and supported by governments - state and local - with more vigour.

We are just too close to change management now.

If you feel you need some information to balance your views a bit, why not contact the company? It is as easy as going to the Gunson website, clicking on the Contact Us tab, and emailing the company - DH or other senior management. I have just done this, and the comments I obtained (though general in nature of course) have given me some balance to the issues surrounding this project, such that I am now convinced we need to lie down and wait until December. We can then review how things are progressing, and what has been achieved in this critical period from now until end of year.