There really hasn't been a viable alternative put forward, so it's no wonder people are sticking with the current board. The vote at the last AGM felt more like a vote against the MMGA group than an endorsement of the current board. The strategy of MMGA was flawed right from the start with their choice of name. How could supposedly intelligent individuals pick a name that would alienate a large group of holders before even revealing their intentions? It was a ridiculous move and combined with their constant highlighting of issues without offering any solutions, it became clear they were only looking out for themselves. So you can’t count the MMGA experience as a viable alternative that’s been put forward to shareholders.
Regarding the ongoing situation between AVZ and DRC officials, we’re in the dark. Ideally, negotiations would be advancing quietly behind the scenes. However, an alternative scenario is a total breakdown in communication between AVZ and the DRC authorities. With various legal actions underway, including those taken against the DRC government, it's plausible that they have opted to cease engagement with the current AVZ management altogether. Despite Nigel's and the board's significant ownership of millions of shares, their resolve may be inconsequential if the DRC has severed all ties and is no longer inclined to negotiate with them.
Recall the tense dynamics between China and Australia during the previous coalition government? Ministerial-level dialogue ground to a halt for years as communication channels with China shut down. Communication only reopening with a change in government following our elections, allowing for the development of new relationships. Players on one side had to be swapped out before progress could be made. Regarding the AVZ/DRC scenario, while it may be desirable to replace the DRC team, that’s beyond our control; our influence lies solely with AVZ management. If breakdowns in communication have emerged between the DRC and AVZ management, internal changes within AVZ should be considered. This assumes a candidate acceptable to both shareholders and DRC officials could be sourced. I hope the relationships haven't become untenable, though I fear that indeed maybe the case.
AVZ Price at posting:
78.0¢ Sentiment: None Disclosure: Held
