Failure to move quickly to secure off-take agreements and funding in a timely fashion post consolidation was always going to add pressure to on the share price in what is still a very risk aversion market.
If I remember rightly our previous Tectonic management had been talking with potential off-take partners well over 12 months ago (with apparently some positive signs). The original timing for closing these deals and gaining funding was in the March Quarter last financial year shortly after the DFS was published.
Failure to be able to meet these original timelines may well be one of the reasons we saw the changes at the top. However, it could also be that the management changes could be the reason why the deals were not able to be finalised in a timely fashion.
Shares have been issued in the last year or so to organisations (as payment) to assist putting these agreements in place with apparent little success so far.
I am still confused by the happenings of late last year and the spike in the share price early this year. I know there are some things that happen at management and Board level that will never see the light of day. However, when such radical changes occur shareholders anticipate and expect that there should be positive outcomes for the project and share price. It seems very little that the current Board and management have done since the start of 2011 has moved the project any further forward than the the old management could have.
Apart from Queen Sheeba and the insignificant zinc-offtake agreement nothing else has really been relevant to getting stage 1 off the project off and running. Other things like the renaming to Phillips River Mining and the share consolidation have been only cosmetic and fundamentally of no real benefit.
To continue to support the current management we will need to see them meet their timelines from here on! Otherwise I see better value in some other companies who have been also hurt by poor market sentiment but have projects moving ahead quite nicely.
PRH Price at posting:
2.8¢ Sentiment: Hold Disclosure: Held
