After having a read of the threads over the weekend, the amount of vitriol that has been espoused is quite amazing.
I can't recall the BGS/MLL/FFX threads/posts being moderated so much,
@camban (opinion) maybe it is more to do with the fine line between opinion and accusations - only tagged you as you mentioned the moderations.
What we have all done, we have reached for the best after the fact diagnostic tool known to man ~ hindsight!
What I have read:
~ Anderson was a dud, his was motivated by his KPI's (which I do not agree with) as nowhere in any forward plans was the company indicating 250,000oz per annum production rates (a key trigger for his performance shares)
https://www.investi.com.au/api/announcements/ffx/14dc1d84-ebf.pdf~ the directors knew what was going on, (opinion) maybe posters / readers should look at what the Non-Executive Director role entails? it is not the day to day operations of the Company.
~ I don't know about anyone reading these threads, but if you knew (as allegedly the directors did) why would you hold your parcel of shares? and why would you be buying them?
~ the Company misleading and lies - accusations that (in my opinion) would be difficult to prove considering:
(a) Anderson's interview at Indaba Mining Conference on the 19th May, he was excited as the Company was on the cusp of ramping up production meeting guidance and being cash flow positive, which is hardly suggesting that the were production problems then, because that would definitely open the flood gates.
(b) Pay Dirt Africa Unlocked (26th June?) interview, hardly show someone that was concerned with the performance of Morila.
(c) Simon Hay in his LLL interview on ASXInvestor - said the problems at FFX were production issues.
~ over inflated amounts of quarterly spending being bandied around ~~ see below ~~ from my calculations, it will be almost identical to the previous quarter ~ excluding the money spent on purchasing Leo Lithium Shares, there was very minimal commentary on the last quarter spending.
~ to which, suggesting the Company purchasing them was irresponsible, was it really? or was the Board doing something that they are being accused of not doing? Forecasting the value of LLL post listing, I would be interested if anyone that posts or follows FFX/LLL would have thought that the price of LLL post listing would be at sub IPO price or would have dropped to the level it has.
~ a conspiracy that all the problems were buried until the demerger
~ company blaming contractors for poor performance - I looked but I failed to find where it was in any announcements
~ influencers creating a ground swell of negativity
~ directors buying on market was just "smoke and mirrors"
~ shut down the mine until gold price improves
~ put mine on care and maintenance
~ suggestions the two directors that resigned would be a better fit for LLL than Borg and Hepburn
-- that is the same two directors that couldn't be bothered making it to their first FFX General Meeting --
~ FFX won't trade again
~ FFX will be liquidated and the LLL asset will be stripped back to pay creditors
~ complaints about the amount of drilling and almost in the same breath complaining about the late resource update
~ FFX will be taken over
~ shareholders being encouraged to lodge reports with the ASX & ASIC, this is probably one that I actually agree with, it gives the person making the report some avenue to vent anger and also if the report has merit then the Company will need to respond accordingly.
~ calls for a 5% shareholder revolt and electing a new board.
~ any Board members that moved across to be removed from LLL
~ the vitriol creeping into the threads of LLL - just what we need eh?
I understand we are all emotional, I was initially when I also suggested that Cowden be removed from LLL but after giving it some more thought (with emotion removed via a bottle of red) I don't think he should move ........
~ There has been little discussion of the Company's COO who has taken over the CEO role, albeit temporarily, maybe readers should make themselves familiar with what the role of COO entails.
~ There has been very little discussion of the Company's CFO, maybe readers should also make themselves familiar with what the role entails.
~ There has been little or no discussion on the impact the falling A$ has on FFX --- see below ----
~ There has not been much discussion the impact missed production guidance had on being cash positive.
@Red Baron did provide a post with some numbers on "lost" revenue, I had a shot at something similar --- see below ---
Is it possible, (my thoughts) basically stems from what John de Vries CEO/MD of Black Rock Mining mentioned re: sourcing a ball mill ......
~ you can get it from Poland, China or South Africa - the South African quotes hinges on parts coming from the "manufacturer to the world" being China. With the lockdown having some impact of parts leaving the country, so lets run this scenario:
~ FFX had spare mining materials (whatever that actually means), but they were being depleted and already had some on order but at the time it wasn't an issue, before the store was replenished they had runout, with the slowness coming out of China and the backlog of material getting through borders, they were eventually affected and impacted the running of the mill to reach guidance?
~ maybe they were expecting the material to arrive earlier and could still reach low end of guidance? until it was obvious they weren't?
Looking forward,
~ the Malian Government is supportive of FFX, as they would be
~ Cowden and the Board have implemented remedial changes
~ the suggested monthly target of 8 - 9,000oz gold appears achievable to put us into cash flow positive?
~ the Company had no choice than to divest the LLL shares, they have a quarterly report to complete by the end of the month and the need to show they are an ongoing concern.
With the cost saving measures and the divestment of LLL shares, they will still need circa A$40m = A$45m to operate Morila this quarter.
I estimate the unexpected loss to cash flow in was circa A$18,000,000 inclusive of (my estimated) lost production/falling A$ and not offsetting Royalties & Tax credits this quarter.
thats my ramblings for the day . . . . . .
cheers
