Aka,I'd previously read thru the EIM questions at length. Part...

Aka,

I'd previously read thru the EIM questions at length. Part of me says that this is part of the performance monitoring oversight of the stock market. That is shareholders holding corporations to account via questions (as does the share price). Another part of me says there is some butt covering by EIM for its decisions. I cannot for the life of me work out their justification for saying PLV accounted for 60% of the decline in their fund in June. You did not include reference that they sold 9.8% of the funds value and that PLV was not mentioned as a stock being sold.

The first set of EIM questions are largely irrelevant now and have been overtaken by events. The second set is at times directed to non-issues as I see it or which were covered within the half yearly. Some have also been overtaken by events such as the environmental bond. Take for example, the issue of the write down of Cockatoo based upon a nil cashflow. The cashflow is now roughly $19m higher now. So after writing the asset down, are the auditors going to reverse the decision months later by revaluing the asset up?

Quite a while ago, I attended meetings relating to the revaluation of an asset. The number one criteria we looked at focused on whether the revaluation was structural and thus long term. We did not want to go and change our mind next year. In PLV's case the auditors took the safest route for themselves. It will be a short term valuation impact in my opinion.

Largely based on that, I doubled my position at 6c average. On any further weakness, I will triple it. In that regard, I'd agree with SuperTim. Hope EIM sell down, but doubt it.

You have posted how PLV is some 60%+ off its pre-suspension price Aka. Note that it is up 46% from its lows. It was up 13% last week and is up 12% so far this week. There were both technical and fundamental reasons to buy the stock. Consistently posting negatively is doing nothing for your profit position.

As for EIM's claims that Cockatoo has little strategic value to Irvine, in short they are wrong. They have to be seen to be doing something. Just wish it was a little more thought thru.

Here are some snippets largely from the EIM website:

11 June - Pluton Resources Starts Trading Again (EIM Website)
Pluton Resources began trading again today for the first time since 23 January. The company has released details of its current financial position. Production is underway. The combination of Cockatoo Island and Irvine Island positions it as a small to medium sized producer in the longer term. It needs more capital to complete its Cockatoo Island plans. There is nothing new in that. The question: does it have a strong enough value proposition to attract the capital. E.I.M. will be meeting with the chairman and CEO in the next few days to clarify what has been said so that we can complete our own cash flow and valuation analysis to verify the ongoing value proposition.

(Bleasby insertion cause its relevant from a time line perspective)

13 June 2013 PLV Director Williams buys 630,000 at 0.0691c
14 June 2013 PLV Director Williams buys 370,000 at 0.0664c (Total purchase: 1m shares at 0.0681c ($68,100)

18 June - Cliffs Begins Selling Pluton Resources (EIM Website)
Today's substantial shareholder notice from Cliffs Natural Resources advising it has sold 1.4 million of the 19.5 million Pluton Resources shares it held signals ongoing pressure for the Pluton share price. Here's an opportunity for a smart broker to place the stock and remove the overhang.


I would take it from this that EIM decided to hold their position.

Pelm: Good to see you were/are buying.
Humble: Good early call on the environmental bond.

Cheers
Bleasby