Consolidations rarely deliver enduring shareholder value. That...

Consolidations rarely deliver enduring shareholder value. That this strategy has been proposed at all is telling in itself.

There have been successive announcements regarding exploration, leading to discovery and expansion, and resource upgrades, and acquisitions and diversification, but for all that effort and outcome, the share price has regressed back to where it was almost four years ago.

So how will the consolidation add enduring value to the business (other than perhaps set the scene for a quick sale)? What happens if the share value reduces by another thirty or forty percent in the first six months post consolidation? Would that have llkely occurred if the consolidation had not proceeded? It’s worth considering the outcomes of other companies who have been through similar experiences.

Why would we endorse a remuneration and incentive program for directors and executives that was not performance-based and linked to the successful delivery of strategic business initiatives that delivered enduring business value, was proportionate to business value (i.e. we should not be paying Telstra wages and incentives as a mining junior), and had a proportion of any incentive at risk to ensure directors and executives were held to account?