Ann: Bathurst Chairman's Address, page-18

My conclusion is that BRL is doomed to remain a deep value stock. 

Most of the reason has to do with this management.  If after hearing all this at the AGM and at Hotcopper, their attitude does not change, then I will think of starting to sell in the market, after the next quarterly report.  They can talk all they want about caring about minority shareholders, but if they can't be bothered to hold a quarterly conference call after their results in January, and face the music, then I will take it to mean that it was all cheap, meaningless chatter...meant to assure, but not to be acted on...minority shareholders are to be seen, not heard.  

The lack of a dividend is another telling behavior.  How hard would it be to pay, say $10 million as a dividend in January, when the cash flow upgrade in this quarter alone is worth $10 million?  A lack of a dividend payment in January will further strengthen my resolved to get out of BRL.  Their claims about a dividend delayed is not a dividend denied, will ring hollow to me.

All the questions and criticisms posed on Hotcopper should have been handled with a public explanation on a recorded line during a quarterly call...that is what quarterly calls are meant for...the chance for a management to clear up any confusion.  It should never have come down to questioning their behavior in a chat room.  Since BRL reads Hotcopper, if they don't take this as an ultimatum, then nothing will.  They need to hold conference calls after every quarterly report, and every major corporate development...James deal, court case etc.  That is a sine qua non for corporate governance.

I have had it with a management that is easily the worst in the Anglo Saxon world, as far as corporate governance is concerned.  I tried my best to get them to change their behavior.  But if the Board and Management remain as arrogant as I have come to believe they are, then there is little hope.  They think they are the biggest mining company in tiny NZ and that affords them a degree of protection.  Well,the market does not care about all that.  You may be a big fish in a tiny pond...but it is your tiny corporate governance that really matters most.

And all those Singapore based funds will wish they had pushed for exactly what I am asking for, as they will find out the hard way that there is no easy exit for them.  Much of what I have written is stuff that really should be tackled by them, not me, as they own 50% of the company. 

But my conclusion (and reading Expat Singapore's "expert" comments helped) is  that all those Singapore funds seem to have got "lucky".  Someone who is lucky may win the lottery, but they sure as hell don't know how to run a company.  So they give Tacon & co a pass...Singapore don't know any better.

Singapore hopes that after the lawsuit is over, whatever be the verdict, the market will move on...it will be "in the price".  That is wishful thinking.  The market is not stupid.  Sure, it may go up some, but who is going to buy their shares off them?  And their hopes of exiting BRL will be in tatters.

As for this cash flow pouring out right now...we will see.  An arrogant management is bound to make stupid mistakes down the line.  With meaningless/not fully explained auditor switching, L&M fiasco, "hedging" (which costs us real cash), terrible corporate governance, lack of an IR person, and pathetic marketing, they have already shown us the level of their competence.  Do you really trust them to know how to invest your cash flow in the future?