West Australian Inc has is nose firmly in the trough once again....

West Australian Inc has is nose firmly in the trough once again. Nice work if you can get it. A 6% fee for three months money at a time of near zero interest rates (just be glad the options didn’t expire 12 months out or they might have charged 24%), plus whatever they can make on 10m options at 20c. All this for a company whose recently declared NPV on the project of $1.9bn is nearly 10x its full diluted current market cap; plus the fact that the aforementioned NPV is based on a 20% below market value of coking coal for the last decade and zero attribution for Elan South.

The non-Argonaut members of the board are pathetic in signing-off on it; unless they were worried that somebody was prepared to depress the share price below 20c for three month. But then again, when you are dealing with the WA mafia, nothing should surprise. Well done however to board member Charles Frear, who is a director of Argonaut.

This deal might also explain why various parties were so hell bent earlier this year to install a new CEO. They needed one who would agree to a deal like this. My guess is that the previous incumbent whilst capable was not so pliable, hence the need to remove him. And for all the raucous that was created, the new CEO has had zero impact on the share price, despite a willingness to film a lots videos (all admittedly pretty good). Mind you, this has probably been offset by his need to spend a lot more on consultants to tell him what the company actually does, something the next cash flow report should reveal.

if Grassy Mountain gets the go ahead mid next year, we will yet make good money out of Atrum. Sadly it will be in spite of much of the corporate and board leadership of the company.