ERL 0.00% 0.3¢ empire resources limited

Hey guys I didn't mean to downramp your stock. Contractor here...

  1. 493 Posts.
    Hey guys I didn't mean to downramp your stock. Contractor here is essentially providing the client finance to assist with cashflow, this can sometimes work and to an extent aligns the two business objectives, if it's going to work it can on these small shows, and in the short term. The danger is when it drags on and the contractor essentially has the client by the balls - inefficiency can creep in as the contractor is basically unsackable and the attitude becomes one of "we'll do whatever the hell we want". There needs to be an arms length, and a master / servant relationship with consequences for non performance (replacement). However, there may be a relationship at the top, whereby the contractor's bosses may be mates with client or joint owners of something etc, in which case the contractor will perform as it is top driven. By all accounts NRW are good operators.
    Disclosure - I work for a mining contractor but have also been on the other side.
    Good luck with the stock but be wary, this one is quite high risk for mine but is on my watchlist.
 
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