re: Ann: Update on Korean Investment in the C...
I think we should ask David Harley to elaborate on the company announcement per the initial post on this current thread. But I guess neither he nor a company rep can post on here with much freedom, lest they divulge information not released to the market. Another option for the company would be to issue a further clarification to the announcement. For example, what is the expected date of the extension to the end-2012 financing condition announced on 13 Aug 12? They are expecting a grant of this extension to be announced in Dec 12, for Gunson to arrange its part of the financing, but what is the expected date in 2013 that Gunson will be working to in order to finalise its part of the financing. They (Gun) must surely know.
What were the reasons for the JVA issues not being resolved, and hence now put back until Dec 12? A dumb question I guess, as Gunson is no doubt not in a position to comment on this, due to commercially sensitive material. But it sure would be nice to know. What is Gunson’s confidence level that the conditional approval of the Korean Fund’s investment will be forthcoming in the ‘coming weeks’? Again, I guess a dumb question, as Gunson have stated it is ‘based on ‘recent discussions’ (whatever that means.) Well, if we do not hear of this conditional approval by the Korean Fund in the ‘coming weeks’....let’s see, the announcement was made on 18 Oct, so ‘coming weeks’ should reasonably be a maximum of 4 weeks, so let’s see if approval by the Korean Fund is forthcoming by around 18 Nov. If it is not, then there is yet another reason to call for heads to roll somewhere. So, I say to the company, we need advice on this by around the 18 Nov.
Regarding the finalisation of the remaining JVA issues, which need to be finalised by POSCO and the Korean Fund. We are told this is now expected in Dec 12. What were the issues that have caused the delay? Are they procedural or material issues? Are there serious problems in Gunson raising their share of the capital that are at the heart of this delay? Ok per my previous point, these are probably rhetorical questions since Gunson would not wish to, nor be allowed to, answer these in public.
Well then, here is something the company could enlighten the market on...............What is the confidence level in having these remaining JVA issues completed by Dec 12, or the confidence level if, hypothetically, a further extension was made till, say, March 13? In other words, is there a high degree of confidence in resolving all the issues by Dec or in fact by any time in 2013? Or are we just being strung along with delays upon delays. I think that Gunson should begin talking in ’levels of confidence’ of key events and outcomes acually happening, not just talk in terms of ‘hoped for outcomes’ as per this recent vague and minimally-committal announcement on 18 Oct. Then, if outcoms are not met, then there should be some explanation (read 'accountability' in the announcement as to why they were not met, and what is the revised date.
Talking about outcomes in terms of confidence levels will not only help satisfy the concerns of poor investors like ourselves, but it may also begin a process of assuaging the market generally. And heck, the market sure needs 'assuaging' in relation to Gunson. I mean, how pathetic and shameful is it that the market values Gunson, with all its progress, potential and promises on Coburn zircon and Mt. Gunson copper, at 10 cents and probably on its way to 5 cents?
Maybe the above could be commented upon by David H. I think I will seek some comment next week, albeit I realise the difficulty for him to provide comment to individual shareholders.
GUN Price at posting:
9.8¢ Sentiment: Hold Disclosure: Held
