Wholeheartedly agree BW, yesterday of all days should have...

Wholeheartedly agree BW, yesterday of all days should have elicited a SP response if there's any current interest in BRK. Clearly there is none. Holders took the opportunity to sell into a liquidity event which sent the price down 5%, despite the prospect of a sustained spike in WTI.

Whether you share in Prentice's conviction in his plans or not, there's two alarming events from the last 12 months that speak volumes to the BRK executive’s collective mindset, and beyond what’s presented in the pitch deck.

Last year's buyback of 5% of SOI’s, that finished in January, initially appeared to be prudent capital management. However, when a near identical value in options was issued later in the year, for the purpose of director & employee renumeration, that was a glaring signal that the board placed the interests of management renumeration before SH interest.

This attitude was reinforced by the Board setting meaningless short term and long-term performance hurdles that ensured that those options would be paid, no matter where BRK’s share price finished up at years end. Measuring total shareholder returns and an efficient return on capital, against the ASX SmallOrds & operational performance doesn’t align executive renumeration with shareholder returns. It’s akin to a game of darts, but the darts are being thrown at the wrong board.

@Tcoppens

The executive reaction to SH discontent at the AGM, to suggest that if a holder doesn’t like it, sell up and move on, is tantamount to saying “we’re out of ideas”. The context of such a comment doesn’t occur as a momentary lapse of thinking out aloud, rather it reflects the mood and thought process of the wider executive.

Citing holders’ negative sentiment for possibly dissuading potential investors as justification for their position, is highly disrespectful of all medium- & long-term holders who have supported Prentice’s plans thus far. All this whilst he’s overseen the loss of over half of SH capital in under five years. To be advised to sell now, indicates that the collective executive takes no personal responsibility for where matters lie.

No one doubts that BRK has experienced exceptional operational success, its undeniable. What’s equally clear, is that the Board has chosen to allocate capital to consistently prioritise a stable source of management renumeration over shareholder returns, and that the executive has contempt for dissatisfied holders. It’s the hallmark of an entrenched executive whose tenure has run far too long. Prentice should have been moved on by the Board when his attempts to prove up, then sell acreage, failed.

Right now, a significant number of shareholders have lost faith in Prentice to deliver meaningful shareholder returns with. When he’s unwilling to invest either personal or BRK capital into heavily discounted scrip, that signals that he’s hedging his bets and lacks faith in BRK’s future as a fellow shareholder. What his roadmap for BRK does look more certain to achieve, is just more of the same.

David, I think your time is up and after the last AGM, you know it. Voting down the renumeration report was essentially a vote of no confidence. 47% of shareholders don’t believe you and they’re no content to wait till FY28 for you to make good on your strategy. Whether you wait till next year’s AGM for an inevitable second strike on the renumeration report or make way now, probably matters not.

I suspect that the growing shareholder discontent that you've carelessly treated with contempt, may take the timing of that decision out of your hands.

It’s how you respond from here that really counts, will it be dismissive and further contempt or will there be engagement with shareholders to address the issues at hand beyond what been presented thus far?