an open message to citicorp

Corporate governance at Citigold needs to be much more than simply window dressing, whilst its managers pocket large salaries that provide no apparent return. It is about showing all shareholders and other interested parties a degree of independent assurance that Citigold is safe to invest in and is being well managed.

It gives me no pleasure in telling you that most of your shareholders on this board do not have this assurance. They are far from being a happy bunch and want change.

Most are aware of numerous companies that have ripped off their shareholders, not managed funds well or both. Many hard working people on this board would have owned shares in companies that went to the wall. Or others, high on promises that come to naught. All, whilst perpetually sucking in never ending funding. No doubt, some of the managers of these companies were dedicated, honest and well meaning, though lacking in competency, transparency and standards of proper governance.

Over the past six years, shareholders have seen huge amounts of funds expended on the Charters Goldfield and management salaries. Numerous placements were made high on management’s promise of a good return. To date, Citicorp has a significantly eroded share value and returns promised by management are not yet met.

Following another placement for the Charters Goldfield, shareholders naturally expected that management efforts would be solely directed towards achieving that long promised. Instead and without explanation, management is off in a takeover bid that makes no sense and further dilutes share values. My reading is that astute shareholders are perplexed and question the competency of those managing Citicorp.

The current low share price reflects exactly how the market values the management of Citicorp’s assets. It now requires a management team with high expertise, transparency and standards of proper governance to quickly redress matters. I urge you to take notice of the legitimate interests of your shareholders who are the owners of Citicorp and act on them prior to the Annual General Meeting.