The copper project's stand-alone future was first floated by AGR on 19/3/19 as part of an update. The MD said they were "actively engaged" in discussion about how best to unlock value to existing shareholders. The subject was mentioned again in an announcement on 1/4/19, but added "in due course". Any such proposal would require shareholder approval but sheer logic and precedent suggests it would be a good strategy. It is more than possible that the plotting-requisitioners were upset by this proposal. On this thread, one shareholder stated that they 'baulked' at this proposal. To me this suggested more than just a casual comment from a garden variety shareholder. If so, i further suggest that this spurred the requisitioners in to acting hastily (11 days later on 11/4/19) to head off the proposal from being floated with current shareholders. Hence, the rush probably caused the back-lash from the Takeover Panel, which is far from resolved. To my way of thinking, Kemo and others were only interested in the copper project; the phosphate being fruit for the side- board. And if the two were split, the chances of this group gaining control over two boards would be nigh impossible. If your perceptions is that the copper project is a mini-Poseiden then so be it. However, there has been no statements made by AGR that aggrandise this project in any way. If I am wrong please let me know. IMO the requisitioners are not 'a group of concerned shareholders'. They are raiders, looking for a cheap and easy take-over of the board. As AGR has stated, nobody, including us shareholders, have been provided with any useful information about the qualifications and experience of the nominated directors. Also, no details have been provided about what the interlopers could bring to the 'table' in order to enhance either projects. Experience is a major factor in bringing these projects to fruition. In February of this year, before this kerfuffle started, AGR said in an update the following "
Dependenceon Key Person
The successof the Company is dependent upon the efforts and abilities of its seniormanagement and board of directors. The loss of any member of the managementteam or board of directors could have a material adverse effect upon thebusiness and prospects of the Company. In such event, the Company will seeksatisfactory replacements but there can be no guarantee that appropriatepersonnel will be found."
The threat by the existing directors and senior management to resign scares me greatly. In my business life which spans over 40 years i have never seen a successful outcome from a take-over where there so many financial, environmental and cultural challenges to be tackled in a foreign environment with no prior experience. Even if you were to buy a pub the seller would give you a reasonable hand over period.
So I am scared for good reason. Vote carefully.
AGR Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
(20min delay)
