Ann: Investor Update, page-22

I was somewhat hesitant to comment on this announcement, but; that feeling left pretty quickly
My personal opinions,
~ if anyone is thinking that this is an honest outpouring from Fraser, and/or it is the best he could do under the circumstances should go and listen to the taped recording of the AGM again! Then look up the word "arrogance", "condescending" and "flippant."
~ if anyone was expecting any improvement from this Board after the s249D actions, think again!
~ if anyone thinks that the Fraser lead Company will be more transparent and communicative, think again!
~ it is blatantly obvious that there is a level of disregard towards the Governing body's Listing Rules or they have completely forgotten their Corporate Governance obligations,
~ not announced (or included in this announcement) a timeline update for the Voluntary Suspension or as the previous extension expired on the 31st August 2023 (announcement 2nd June 2023) re: "The Company requests that it securities remain in voluntary suspension until the finalisation of the proposed funding, which it anticipated to occur by 31 August 2023.
After the Board of directors ticked off on their Corporate Governance previously, they couldn't even be bothered to at least change the reason why we are in suspension let alone update the market.
** Does that mean now the suspension has expired we start trading again? lol!
~ 1/2 yearly audited accounts overdue -- again.

Lets start with the first sentence,
"I wanted to provide a further update, as we undertook to do in our announcement on August 23, 2023."
~ maybe a wordsmith or an English teacher could advise as to the correct word to use as I am conflicted between condescending & patronising.
He didn't want to, the Company made an obligation in the previous announcement, simple!

Is it really an update?
Are we anymore the wiser now than we have been at anytime in the previous months?

I have some real concerns now along the same lines as @MM0 has alluded to, but just to rekindle the statements/claims made at the AGM:

Fraser @42mins:
"The decision to cease funding Morila wasn't taken lightly, the decision to just sever ties and walk away completely was in the best interest of the Company" ~ same as when the LLL shares were sold, the decision wasn't taken lightly! and if anyone has forgotten the quips and comments Fraser made at the AGM, here is a recap for you.. .. ..
** We needed to ascertain what funding was needed going forward, it was only a small parcel, they were not the escrow shares, we have already handed back $591m to shareholders and the coup de gras, the LLL share price fell after we sold so we picked an opportune time .. ..
** not one ounce of remorse for the decimation of an investment in less than 9 days!!

Lowe @44mins;
Lowe: It is important to note, the main test to deconsolidation is control of the asset, as we do not control / manage or direct the Morila mine.
Lowe: It is an important point to make, any creditor/s that Morila SA have, have no legal basis to make a claim/s against Firefinch Limited (Company) or its assets.
Lowe: There is no parent guarantee, we were very conscious of protecting Firefinch Limited and its assets from anyone making a legal claim against us or the assets.

What is missing from this statement (its hardly an update if there has been no update IMO)?
~ the company have dropped the premise they are in "good faith" discussions with the Government, as previously advised by Michael Weir (Citadel-Magnus) the company has engaged one of the worlds leading international lawyers, being Clifford Chance -- -- why would they be needed if all we are in negotiations for was "good faith"???
https://www.cliffordchance.com/about_us.html

~ the company has also dropped this from their announcements:
¹ Firefinch once again emphasises that it is not a party to any agreements between Morila SA and its vendors and suppliers, nor is there any agreement between Firefinch and Morila SA that would require Firefinch to either resume funding Morila SA or meet its debts, or other liabilities. Shareholders are also reminded that FFX has already written down the value of its shareholding in Morila SA and/or FFX consider that it has no liabilities relating to Morila Gold Mine, the Company has nevertheless agreed to enter into good faith discussions with the government.

According to Lowe, who had 20 years experience working in 6 different African countries, they all are different, their legal systems are different, the Mali directors operate under Mali law, the Mine Manager can basically incur debt without the approval of the Board?
~ why would an Australian company that were adamant and had a very high level of confidence there was no recourse to liabilities, find the need to use the high calibre lawyers for something as menial as good faith discussions?

Even more concerning, re: "The issues we are dealing with, however, require significant legal input which is critical to protect Firefinch's interest."

At least there was some form of humour in the announcement: "Importantly, we must allow this process to run its course to enable a transaction ...(sic)"
~ like, as if there is a choice .. .. ..

Is there really a Corporate Transaction in the making?
On the 14th December 2022 the Company announced it had engaged Treadstone Resource Partners for this purported Corporate Transaction, it is nearly 10 months and well .. .. .. .. here we still are, if the purported transaction is not contingent on a sale of Morila SA, but the interested parties desire Morila SA being disposed prior to entering an agreement.
++ Agreements can be drawn up with Conditions Precedent, there will already be one for shareholder approval on any transaction!

What happened to the "suitable timeframe"???

Under the ASX listing rules governing escrow shares, they cannot be offered for sale, etc but there is a clause were they can be disposed of under a scheme of arrangement. Given historical timelines for a SOA is circa 120days, and given that the Morila SA disposal will be or is at the mercy of the Mali government that work to their own timelines and not those of an ASX listed company and given that the purported interested parties want the disposal of Morila SA completed, I would hazard a guess that by the time that any Corporate Transaction could be completed the LLL escrow shares will be free of their restrictions!
So for all those that wanted liquidity now (shakes my head) it has become a mute point!

In all honesty, I do not know why the Company doesn't just abandon the idea of a Corporate Transaction.. .. .. saves us continuing paying for Treadstone services? Although, I have no doubt there will be some sort of no fault exit clauses?

Lastly, if there is no reasonable prospect of a successful corporate transaction, the Company will start taking appropriate steps to return assets to shareholders - I thought they had already started that process with the ATO for a class ruling on capital returns?
Why do they insist on using advisors for the to determine the best way to distribute the assets? -- simples, my bank account number is registered with Computershare Services, lol and, just pop my entitlement of escrow shares into the relevant trading accounts -- easy peasy you would think?
With the amount of legal argy bargy, I doubt there will be much capital return (cash) back to shareholders.

Food for thought:
Maybe the minimalistic content of updates () is driven by the Company wanting the Mali government to read too much of their plans?
-- it is the only reason I can think of for the lack of information!

A company that currently provides minimal information/updates on the 27th June 2024 will be automatically removed from quotation, there is only 1 clause for this to be extended (as I understand it) and the ASX can grant a further 3 months extension but only in the case of finalising a delayed transaction that satisfies Chapters 1 & 2 of the listing rules.

We will be at the mercy of the board if there is no governing body (not that they do much) for them to abide by, Corporations Act still applies though.
Given that the Company has failed to inform the shareholders of (a) voluntary suspension timeline (b) information update timeline, and (c) failed to announce the 1/2 yearly financial report - I have lodged a query with the ASX.
I can exercise patience for potential transactions to take place, but the Company can still abide and adhere to the governing bodies!
Remember, Corporate Governance was one of the platforms the current board highlighted in their sales pitch to thwart the efforts of the requisitioning members 249D actions.

cheers