Firstly a big shout out to all the old timers, you know who you...

Firstly a big shout out to all the old timers, you know who you all are. I just want to say a few things.

I have been with this stock from the very beginning. From the peaks to the troughs, and back again, and then some. I have never lost the faith. I’ve seen the DNA of the people who run this company and it has and continues to put me at ease.

Throughout it all I have only sold a tiny portion of my large holding, unfortunately at bargain basement prices against my hard earned insights into long term investing (but I really needed the money at the time, really) luckily I did without for a period to preserve the majority of my holdings.

Over the years (almost a decade now) I have had the utmost faith and confidence in the whole management team and major shareholders. I’m emphatically feeling it’s all coming together now and all that is missing to complete the puzzle is a small revenue producing diamond mine asset which I’m sure they are diligently working on at the moment.

I must admit I was a bit overwhelmed with emotion last week when the share price finally received the long overdue leg up it so rightfully deserved- many ‘go nowhere’ listed companies with unproven skeletal teams have had bestowed upon them multiple market caps far in excess of ours.

I must also admit I was a bit a bit distressed by the greed of some ‘fly by nighters’ clearly evident in their ‘gung-ho’ posts. This company has been a text book example of the true Australian Company fighting spirit, never giving up and managing the journey for the benefit of long term wealth creation of all shareholders, including nobodies like me. It really is a rarity these days.

I wanted to comment on some of the ‘Peruvian’ whispers that have been passing around over the past week re: the so called unnamed ‘directors’ selling 500K of unlisted options at 7 cents. If you go to this link https://www.ehrresources.com.au/investor-centre/financial-reports you will find the reports I’m referencing.

As you all might know sometimes companies in the growth stage that want to preserve money will issues unlisted options to related third parties in lieu of services rendered, this makes prudent sense because it doesn’t require precious burning of cash and there is also the possibility that the options might expire and in effect the services are rendered free or at minimal expense, although usually to balance this (small part cash payments in combination with options would suffice for both parties).

Having in house Director related third party services provided to the company that are disclosed and transparent, provides an advantage, especially to a small company wishing to grow because generally an insider would have more confidence and vested interest for success, resulting in eventual payment, also Directors normally bring in their professional expertise into the role (including related and fully disclosed complimentary businesses).

So now we have 4 lots of 2,500,000 unlisted options at 7 cents expiring in June next year that were given to each of the directors as incentive for future performance (EHR prospectus 2017), those have not been exercised (each equally given out). Then there are 2 lots remaining of 500,000 each, obviously 1 parcel of which was exercised last week. It is my belief and opinion based on the information I have read (EHR annual report 2018), pages 13 through to 15 that the following is the most likely explanation.

I draw your attention to the top of page 15- I quote “Other transactions with KMP (Key Management Personnel)- During the financial year, the company incurred fees of $109,200 for company secretarial and accounting services payable to Mirrador Corporate ( a Company of which Mr Jeremy King is a Director). All transactions were made on normal commercial terms and conditions at market rates. The Company has a payable of $8,400 to Mirrador..” etc..

So you have the majority incurred and remainder payable.

The bottom line is that the smaller bundles of options in question were most likely consideration payments given in return for these services. 500,000 multiplied about 20 cents = $100,000.

This is perfectly normal, common, above board and very transparently disclosed for anyone willing to read a little deeper.

Also keep in mind with regards to the 2017 prospectus, quite a few third parties were involved in the preparation of the offering so there are many scenarios whereby the remaining 500,000 unlisted options could have been given/granted.

So let’s get rid of this unfounded and unfair innuendo that ‘directors’ are cashing in. Because with about 260 million shares on issue, they are clearly not.

I have waited so long, never long enough because the final destination will be worth it, but the only way I would ever start to thinking of selling down my holdings in this stock would be many multiples of where it is now (remember CIA a few years back at around 20 cents). This stock has taught me precious patience and the impact that decent honourable people like the KMP’s here can do in changing the lives of all shareholders for the better.

Finally I want to quote Michael O’Keefe’s old mentor at Glencore, Ivan Glasenberg, who will be starting a well-earned retirement next year- “The only real business of Glencore is to make money for shareholders.” Not a bad philosophy, the true DNA of capitalism.

Anyway hope you enjoyed the read, and my reflections.

I’m getting old, basil won’t be writing or replying much anymore. So I want to wish everyone a Merrry Christmas and a Happy New ’21 and beyond!

Peace out (O: