ability confused with ambition

Management have suffered a serious case of confusing their abilitys with their ambitions...........


Back in Jan when I contacted management with regards to ELK looking sick on the cash front and that it was imperative that they do JV deals on assets I was met with an air of confidence that they knew what they were doing, everything I said fell on deaf ears........

ELK took the exploration assets to NAPE with an implied valued of Aus$3.5mil....no takers would suggest that ELK were completly out of touch with the market, considering the state of ELKs finances we can only assume that no party made an offer that was anywhere close to the asking price.....I expect there were hundreds of companys and individuals represented at NAPE many of whom would have been willing to invest in quality projects at the right price....

6 weeks after NAPE ELK were in trading halt trying to dump shares to institutions at 9c which valued ELKS entire assets at Aus$4.7mil...SDS had a NPV of around 13cps based on Wickermans numbers ......so what changed in 6 weeks to lead them to make such a massive change to the value they were willing to sell ELKs assets for?????......their incompetence became clear.....

Obviously the climate was not conducive to selling exploration assets, in which case why did they punt the company on the sale of those assets....if they were serious about JV Grieve chemical flood why did they not take that to NAPE.....it would have been far more attractive to a JV partner due to its significantly lower risk profile.....Why is it that they spend more effort trying to buy votes to support there own personal share purchases than they do to market our main asset.....is it that they are not trying to market Greive, but intend to develop it on their own with debt, they have mentioned that in a few presentations......self funding Grieve would be a massive risk, especially when you have the track record of failing dismally and spending significantly more than budgeted as ELK management have.......wipe out the company in one hit.....

Have they made a serious attempt to JV Grieve yet?? I suspect not....resolution1 is aimed at allowing management to dump more shares at a discount to institutions and sophisticated investors....It all comes down to management taking the easy personally rewarding way, rather than what is in the best interests of shareholders!!!!!!!!1