Hey GN,Hope you had a great weekend. Our management team are...

Hey GN,

Hope you had a great weekend.

Our management team are paid quite well, which means they should be able to pivot/adapt to current global conditions.
They did well pivoting away from China and COVID was a freak occurance (scale wise) that affected almost everybody …. But remember too that current conditions have also led to insanely higher Urea prices vs when the company undertook their PFS.

As a spec stock, yes, SP/MC’s can be wildly overvalued/undervalued at times … but management do hold some responsibility here.

Things like :

- Consistently missing your own timelines. You should underpromise and over deliver, not the other way around.
- Paying out incentive options to management when no targets were met, and most shareholders are sitting at a loss.
- Raising money at lows, when often the SP was 20%+ higher weeks prior …. More dilution.
- Not having someone in the MD role who represents an exciting face/direction for the company, who can present well etc.
- Few updates, and usually months in between. Not much will erode a spec stock’s SP quite like the absence of news.


Don’t get me wrong, I’m very confident they’ll eventually tick the few remaining major boxes (particularly around funding) …. No idea of what type of dilution we’ll have though.

But management definitely hold some responsibility over the current SP …. And if they need to do ANOTHER CR at these levels prior to getting pre-FID funding, then that’s also a failure on their behalf.


Cheyne.