The founder and long time MD of the company, currently a non-executive Director, Brian Thornton, was due to resign from the board in early 2014. His remuneration as a Director is not insubstantial. It appears he changed his mind between the last board meeting and the AGM about voting for Denis Gately, and his large parcel of shares carried the vote against Mr. Gately. We will know by early January whether Mr. Thornton will also change his mind about resigning from the board.
The company has spent somewhere around $30 million along a twisted path of coal exploration, high government tenement rents, high staff levels, and quite a large and well remunerated board. There is not much cash left and the main hope, Oyut Ulaan, while interesting, is only at the very beginning stages of discovery, with a lot of money to be spent to expand the mineralisation. Some very careful fiscal management is required.
It looked like Denis Gately had a clear vision about the way ahead, reigning in spending and concentrating on one or two projects, now we will have to wait and see if the new MD can and will do the same or better.
An early statement from the new MD would help to relieve anxiety among shareholders.
XAM Price at posting:
6.0¢ Sentiment: Hold Disclosure: Held
