Ann: Results of Meeitng, page-28

Ralom,

Unfortunately a management that brings on this sort of vote with such little finesse brings the discussion on themselves.

In fact everytime someone whinges on this forum about the loan discussion, you can guarantee myself or one of the other NOs will take the sledge and try and offer some perspective around it.

I'll be happy to see the good news flow and the share price get up towards the value of "our peers" ...

But these discussions - to to mention poor vote result - do not happen in isolation.

Consider that not once in raising capital in the past four years has management given long-term smaller holders a seat at the table. Two of those raisings were to leaky entities whose clients almost immediately flipped the shares for a pip or two - killing the momentum and the story for 6-18 months.

Over all that time holders who believe the story have held and waited and been patient and had various stories told to us about why placements could not be made that involved us. Why we are spending money on New York presentations that go nowhere? Why we are so undervalued to peers - particularly given the now huge bonuses paid to directors. How is it we are still .20 under the price we were three years ago?


Through all this a core group of holders bought on market and helped support the shareprice AND management.

Many of us were hoping that we would finally see directors show the same level of commitment to the stock and ensure the companies upward movement by putting in their own cash for options, thus bolstering the bottom line and sending a strong signal to the market.

INSTEAD ....


1. They raise more capital ... "because they can" to support long term goals ...

2. A few weeks later At 6.03pm on a Friday night they put out the trash and say that directors will be seeking a $900k loan to convert options, thus reducing the balance sheet by $1.8m and negating the dilution they just imposed.

3. Half a dozen dot points on why the loans are ok. Only one on why this might not be the best use of funds. Did we mention loans will be funding shares that will ultimately be held by arms length entities? No correspondence will be entered into.

4. Oh oh numbers are not looking good. There'll be dire happenings if these loans don't get up apparently. The directors will not be incentivised. Suddenly those who have indicated they are no are clearly on the outer and bizarrely copping it online from long dormant HC nics.

4. Oh oh numbers are still not looking good ... at the death, a few key swing voters previously advocating NO suddenly 'disappear'.

5. Meeting. Report back pleads 'mortgages' ... meat in the room says loans to directors after diluting shareholders to raise cash is normal practice. (I'm taking this on trust from a hot copper post)

6. We snuck over the line ... like, really, it was close. So close that a few more percent on that vote for a renumeration report will bring a first strike under asx rules.

7. Don't mention the war or the burning pile of goodwill in the corner of the room.

I certainly hope this is the last of it and that they move forward with a bit more care for all shareholders