Opening up the discussion, my thoughts on the matter. With a personal Raven Rating.
Announcement (C-) - Finally getting some communications through the official channels, some would say this is too little too late. Although we hear the information that we have gleamed through shipping and media, it is good to get confirmation of this from the horses mouth and the additional nugget of information about the sabotage is also interesting. (More on that later)
Royalty (B+) - Not as much as we expected but good in the current IO market. As detailed in the announcement, this will only be a part quarter as the mine has been shutdown for a period of that (my est. is 1 month) and as the contract says, we can add that royalty time to the end of the contract. Which means we also need to be aware of when the mine is open and closed to get a good idea on the value of the royalty.
Shipping Size (C) - The amount shipped is a very fuzzy number, the size of ships, how full they are and what is considered as mined during that period.
African Minerals Holding (Possibly A but Potentially D) - This could turn out to be of advantage during the depressed share price, I would look at buy back or sale to a friendly investor. The current shareholding at this price is worth $4.5 million AUD, we surely have this still in the bank and paying them out at a reduced price will ensure that we are not encumbered by them, keeping in mind that around half of this ($2.25 Million AUD) is due to them in postponed dividends. Getting them off the shareholder registry for $2.25 million would be fantastic, I have never liked having a competitor owning a large chunk of a business I am investing in.
Company Direction (D) - It appears that the company direction is still being communicated as being in the IO market which will see all the investment wrapped up for the next 5 - 10 years of depressed value. Now we have seen this many times before in the 20 year IO cycle but having the majority of our investment strategy in this one commodity is not wise.
Communications (F) - I will break this one down a little, right now we are getting the majority of what is happening right through mass media and basic free internet tools. The message at least on this forum is somewhat negative and being perpetuated through nervousness and conclusions. Communications needs to be more transparent in all aspects, a corporate timeline that include key dates and clarity as to the assets of the business. (lithium mine listing). Nothing is publicly committed to and therefore the directors are absolving themselves of target accountability, communicate a date and hit it please.
Exploration (F) - This was a money pit in the last financials with no reporting on success or any details of future activities.
Perth Glory (F) - Is anything that Tony Sage is involved in with out controversy and done with in the law?
What I want to see as a shareholder -
General Business
- A business timeline broken into quarters. Targets for the directors and executive staff to achieve that align with the business strategy and how they plan to deliver value to the shareholders.
- A regular email to shareholders showing progress to timeline - monthly would be nice. Doesn't have to compromise deal secrecy, just tell us you are still there and working on x,y and z.
- Details on exploration activities - where is our 3+ million a quarter going?
SL IO Mining
- Break down of ore shipping.
- Detail of how the ore shipping is tracked and monitored. (Is Timis paying Royalties for all that is shipped?)
- Sabotage progress, is the mine insured, are the police involved, has someone being identified, what is the cost to the plant and when does Timis expect to recommence mining?
- Clear details of mine closure and its effect on the Royalty timeline to determine the long term impact.... i.e. 2015Q1 - Closed for 43 days.
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