1. Obfuscatory corporate speak is a problem with this MD. "Test samples" are referred to in the highlights without saying if they are from the vibracorer. You have to read the Minemakers report today to learn that we have only just started sea-trialling the newly manufactured vibracorer device, and therefore that they are probably still busy perfecting its operation rather than actually collecting vibracore samples to send to the lab. The "Test samples" then are not from the vibracorer. This is not a trivial point, as the delays are costing us in terms of more expensive finance which we pay for through utterly mega quantities of extra dilution. Our MD perhaps doesn't want this discussed, and his $800 a day salary probably contributes to the problem?
2. He still hasn't come clean over which shareholders approved his appointment. He doesn't want us to realise there are conflicts of interest between the various types of shareholder and he doesn't want to be questioned about how he resolves those conflicts perhaps?
3. He still hasn't bought any shares in the company. He might be waiting to load up at a knock down price in the next fund raising, which only gives him an incentive to dilute the long standing shareholders even more. On $800 a day he can afford to buy shares in the company. It is shocking that he hasn't.
4. He still can't "negotiate" with the Iranians. He can only "progress negotiation" with them, which is something completely diferent, otherwise he'd have saved himself a word? That needs to go in a dictionary of corporate gobbledegook. Has he been taught to write like this by Drummond?
5. He has omitted the fact a new shareholder agreement has been signed. (It is in the Minemaker's report - it was signed on 27 07 10.
6. It is good he put his name at the bottom of the report this time, but signatures at the bottom of a report are better when they have a date next to them? Confident MDs aren't afraid to be tied down by a date?
7. Common gangue minerals are silica (SiO2) as quartz or various silicates, aluminium oxide (Al2O3), calcite (CaCO3), dolomite (a mixture of calcite and magnesium carbonate, MgCO3), barytes (BaSO4), fluorspar (CaF2) and various iron compounds. Our MD mentions Fe, Al and Mg, but no details are given about what the implications are for costs if these compounds (the common gangue ones I assume our MD means) have to be separated out from P2O5. Surely this is crucial in whether we can be in production next year with a quick cheapo DSO operation and on whether we can beat Minemakers with their new extended target date for production from Wonarah. Now if our MD is a Minemaker's appointee maybe he doesn't give a toss about beating Minemakers to production. Lots of unanswered questions, and lots of worries remain.
UCL Price at posting:
0.5¢ Sentiment: None Disclosure: Held
