Open for discussion!
On the Dargues Acquisition
The only thought given by the Board towards existing retail shareholders was the decision to ask the ASX if Aurelia was required to obtain shareholder approval for the acquisition of Dargues. The ASX confirmed it did not.
Further to this, Dan and the Board (having approved the announcement) in the initial submission to the ASX on 13th November 2020 regarding the ‘Strategic Gold Acquisition and Equity Raising’, acknowledged ‘the acquisition is likely to represent a significant change to the scale of Aurelia's activities’ but they thought best to leave the retail investors completely out of the acquisition decision, apart from offering them the opportunity to buy shares at $0.43.
Dan’s comment on the acquisition finished with; “we believe this transaction ticks all the boxes for Aurelia shareholders and offers excellent short and long-term value growth potential.”
I for one have not witnessed over the past 12 months the ‘excellent short term value growth’ especially with a depreciating SP of late and a substantial reduction in income from the removal of paying dividends.
We are yet to see the long-term value growth and with no definition of long term, we could be waiting for some time before we do as this will fall under the disclaimer, quite thoroughly and professionally presented over 5 pages within the ‘Investor Presentation –Gold Acquisition / Equity Raising’ released the same day in relation to ‘Future Performance’.
This section of ‘Future Performance’ discloses that the presentation may contain certain statements that constitute ‘forward-looking statements’ which can be identified by the use or terminology such as ‘will’, ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘continue’, ‘assume’, ‘forecast’, ‘estimate’, ‘likely’, ‘intend’, ‘outlook’, ‘should’, ‘could’, ‘may’, ‘plan’, or comparable terminology.
The above terminology, or comparable terminology is what we investors look for within announcements on the ASX to determine what is actual, i.e.; safety results, sales to date, cost to produce those sales (Operations, admin, staffing etc), realised profit, cash in bank and what, if any are ‘forward-looking statements’.
With today’s SP so far touching on $0.365, a drop of over 15% to the above opportunity to buy shares and nigh on 1 year to the announcement of the acquisition, plus the removal of dividends being paid to shareholders, brings me to my point on the upcoming AGM and the voting required to be completed prior.
Remuneration Report
Results, positive results, should be rewarded. That said, we are voting on a remuneration for a period that has passed. Apart from the excellent exploration results, which are for future voting as we have not ‘realised’ the return to shareholders, I have nothing to be excited about regarding the negative position of my current shareholding of AMI shares, this includes the dividend paid out in October 2020. I think that sums up my vote on this section.
Election of existing and new Directors
I believe in the saying ‘it’s better the devil you know’ as this will at least, reduce overheads trying to find replacements and the new guy on the block Peter Botten, with his past corporate experience can only be anything but beneficial to the future actions, decisions of other senior members of the AMI Executive Team!
Long Term Incentive Plan
Not at ease with this one. This was the ‘Performance Rights Plan’ but the company undertook a review of this and decided to replace it with ‘Long Term Incentive Plan’. I’m all for change but I prefer ‘Performance’ results for rewards rather than being rewarded for staying long term even though I know there are other conditions to be met.
Future Performance
I have no doubt that Aurelia Metals will become a force to be reckoned with, but it’s still a long way off this and unfortunately, the ‘rinse and repeat’ actions will continue until such time that ‘actual positive results’ are presented to the market that can only result in a rocket being placed under this stock which is long, long overdue!
No, I will not be selling any of my holdings until such time that they are in a positive position from when I purchased them. Never sold at a loss, never will.
All the above in my opinion only and not to be used to make investment decisions.
Happy to be corrected on any of the above for further discussion. Still time to make changes to votes!
Sentiment updated.
GLTALTH’s
Regards,
Peakabooau
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