Ann: Quarterly Activities and Cashflow Report, page-3

Apologies to anyone who has already mentioned all or any of below points (have only just had a chance to read the report and do a summary)
This is one of the most childish, petulant and contradictory reports I’ve read.
The Directors are disappointed about not being able to push through the De List but acknowledge that the ASX has made subsequent change to Guidance Note 33 which patently supports the fact their proposal did not meet appropriate standards.
The Major Shareholder –
Not inclined to now acquire balance of issued capital?
Strange sentiment from a group who have been actively trying to increase their ownership from day 1! Surely the Todd group are pragmatic enough to stick to business and not make anything personal?
Also do not want to be funder of 1^st or last choice and Company can’t rely on their funding in the future.
What had they intended doing if they were successful in a full takeover of FMS? Buying a majority share of a Company means you will be contributing the majority share of equity (and gaining percentage if others don't) until you get to a certain development stage when much larger capital is needed and other funding avenues are considered such as bringing in large equity partners (even private equity perhaps!!) or JV type funding.
Infrastructure Solution – Very interesting comment here! It is acknowledged there are a number of theoretical infrastructure providers and that TIO would be unable to vote on a solution involving BBIG, however ,they make specific note TIO would be able to vote against alternatives!! Is this an acknowledgement that they have been unable to talk to anyone else?
PIOP Resource – Confirmed they have released implications of the Maturation work "...to the absolute limit of the rules and regulations imposed..." (not sure what they mean by this)
They also reinforce that additional work required to get to BFS and state that “the PIOP Resource Statement should not be interpreted as indicating that there is an economic quantity and quality of product to support a large scale.”
I imagine Todd family are going to be very upset if that is the case having gone to the trouble of planning an infrastructure solution and signing a State Agreement to tie in PIOP with BBIG (along with conducting tenement services for FMS over the last few years)!?
BFS – Requires a BFS to be completed! Yes, we keep hearing this. Stop getting bogged down in things like De Listing etc and get on with it. A BFS which is completed will finally support the project one way or the other! I still question their cost estimate but whatever it is it has to be done! We are just chewing through money at present.
PIOP Dev & FMS Bal Sheet etc –
Of course the balance sheet doesn’t support raising capital for the mine, which is normal for a Company at this stage. That is why a BFS is vital and will change the capital structure of the Company and also give investors confidence and ability to fund.
Apparently they now understand that TIO is not inclined to fund the equity to develop, so again what has been their intention along the way?
A BFS will open up avenues of funding not a De Listing as stated.
It may be that some of our Directors need to get out more. There are many Private Equity groups who invest in listed Companies and this suggestion that FMS is somehow different is ridiculous. Of course there no doubt is some who prefer to operate outside of the public glare however you will always get Investors for a good project.
If PIOP does not have sufficient supply or quality then what Investors are going to invest, regardless of listed or not.
Have they an investor in mind who has made some demands??
They also mention here about the damage done to the Company by ill informed shareholders. The fact is, ill informed shareholders have absolutely no power or credence if Directors are making the correct decisions and acting for all. Any damage to this Company is due to the current Directors actions as evidenced by ASIC comments!
Personal harassment – Obviously (and unfortunately in my mind) anonymous boards such as HC have emotions run high at times and this appears common in the social media world. I sincerely hope that no minority holder has subjected anyone involved to any sort of threats or abuse.
Operational Activities – It appears our CEO and other Directors have completely shelved doing anything productive for the last quarter and instead focused all their efforts on trying to De List the Company, so this section took up 2 lines after wasting energy in writing a lengthy defence of their actions to date which have been called out.
It certainly appears to me to be a legitimate question as to what we are paying our CEO for. (It appears highly likely that he won’t even attend the EGM as he or Coates should have been nominated to chair the meeting which would be the correct procedure!!)
Summary (mine) - The Board continue to confirm that a BFS is required to further the development of PIOP and logically this should be the next move. If a BFS proves PIOP does not have the capacity or quality to satisfy long term large scale operation then why waste time and money De Listing the Company. If the BFS substantiates the capacity and quality then FMS will be in a position to negotiate a supply agreement (presumably with BBIG) and enter funding arrangements just like any other Company.
If TIO(NZ) now do not wish to contribute further capital it beggars belief that their direct associate (PIO) had recently committed to an unsecured loan of nearly $40m which FMS could not service, had no repayment proposal and did nothing to further the development of PIOP. Interestingly the loan originally had a conversion component, but of course that had to change.
The sentence “The board is now exploring alternative available options for the development of the PIOP and will announce the proposed way forward in the near future” is rather strange. They have already stated that the way forward to develop PIOP can only be explored once a BFS completed. (So a rather ambiguous sentence)
Cash Flow
I am dismayed that FMS have drawn the $3m working capital from the PIO loan without foreshadowing a proposal to repay it asap - again is anyone driving this Company?
I am also disturbed to see in the quarterly a figure of $246,000 paid to related entities.
I can only presume this is a continuation of tenement work done by BBIG which is disturbing when apparently we have nothing to do with them and will only start talking after we have a BFS!?
Appears to me to be a Quarterly with hardly any details of company activities, however plenty of words trying to defend Directors actions!
All of the above is my opinion only - Sorry for long winded posts