Dragon64, Not difficult at all. What is the current board's...

Dragon64,

Not difficult at all.

What is the current board's plan. To spend $1.5 million on exploration up to the end of 2015.

Now if they've already spent ~$100 million on Mumbwa and it has added negative value to the company what hope in hell is $1.5 million of exploration dollars going to have to lift its value? Answer: None whatsoever (that exploration is currently a waste of money) or a tiny chance. The old adage in exploration is that you've got to kiss a lot of frogs to find a prince. Well $1.5 million doesn't buy many kisses at all.

Then we had a board that was happy to occupy seven board seats to send the company backwards to the tune of US$4.4 million per quarter. Its only since one of Llyod's men has come onto the board that the company has scuttled two board positions. Pretty embarrassing really to need seven board members to run this company. As Lloyd says they have no vested interest other than sitting on top of the cash pile. They hold less than 1.5% of the company between them. How could their interests ever be aligned to ours.

So what's the existing boards strategy?

1) enhancing the value of the Kitumba asset through staged studies and exploration success.

2) establish a strategic partner or buyer for Kitumba.

Well I've already mentioned the chances of exploration success by spending $1.5 million (next to zero) and they've already worked the PFS over 3 times for no gain and downgraded our reserves by 25% in the process. Any party interested in Kitumba can do their own sums on the project, the board just needs to get off their posteriors and go and drum up some interest. Problem with that though is when the same guy was at the helm and they found a partner for Perkoa Zinc a few years back that just turned into a birthday present for Glencore.

Dragone64 if you read the current boards statement they have said if the copper prices stay low and they have no exploration success (which is almost a certain given the low exploration spend) that they will return capital and "take steps to extract value from the Kitumba asset" (sell the thing).

Their stated plan in that document is exactly the same as Llyods except they are going to use the excuse of exploration to ride out another year in their cushy jobs.

Lloyd is just going to get the job done faster and for less expense. He says he'll reduce the board expense by 50%.

What else is the current board planning?

3) considering value-accretive transactions or acquisitions and returning cash to shareholders in excess of reasonable needs of the prudent execution of the above.

Well if they were really trying to enhance shareholder value by this means they would have started already and brought a deal to the table for shareholders to vote on. This move by Llyod has just caught them out and they'll make up whatever hog wash about enhancing share holders value they can think of to keep their jobs. And if they were serious about maintaining share holder value they would have deployed a little of the approved buy back capital to protect the share price from falling below 10cents during the recent market route. Did they do that? No they didn't and there was absolutely no interest in the shares or the company and the absolute thinnest of volumes were traded over this period until Llyod came in with his bomb shell and suddenly the buy side filled with lines of millions of shares.

And the funniest thing is that graph they present that shows the peer share price comparative performance. Did Scott completely forget to tell us that he oversaw the merger. Remember Dragone64 he was touting the post merger value of Blackthorn to be over 30cents if my memory serves me correctly. Then shock horror the merger comes along and the share price sinks instantly like a stone to about the current prices. No warning of this but someone most have known that the capital return to the Intrepid shareholders was going to leave a share overhang that would result in the sell off that occurred post merger.

If you think the current board will steer the company through this commodity slump and develop Kitumba at the other side when the time is right you are gambling with a pretty big unknown. What I do know is at this rate of spend in 5 years there will be no money left. Better to cannibalize the company sooner rather than later.

IMHO it is urgent and imperative that we all vote with Lloyd or face the prospect of a long run destruction of our current share value.

And by the way if he doesn't succeed this time it is my opinion that he will stay the course until the next opportunity arises at much lower share prices and he will try again. The next time however there will be no question of success. We will be jumping into his arms like rats trying to find flotsam from a sinking ship.

Eshmun