drummond opinionated nonsense in asx ann...

The research note produced by Matthew Trivett of Patersons contains a lot of interesting stuff about the new appointees to your company. It is well worth reading, IMO.

However, it looks to me like this research recommendation falls into what is in the brokerage industry in the UK is called "Non independent" broker research. The normal format is that the small print at the end contains a statement to that effect.

The reason for it to be sponsored or Non independent research (usually paid for by the company who benefits from its publication) is that with small companies there is not enough broker commission generation to justify the cost of doing such investment research. Any stockbroker that produced such copious amounts of broker research (13 pages today on MAK/UCL) would soon go out of business if it wasn't sponsored research. Some times it is produced as a freebie for other paid-for services to the client company.

Mr Drummond said in his latest ASX announcement today:

“Minemakers regards Patersons’ recommendation as a STRONG, INDEPENDENT ENDORSEMENT of its Offer. The full Patersons broker report is available to download on the Minemakers
website: www.minemakers.com.au.
"

When a broker research note states a value of ZERO (I assume the zero is not a typo) for an $18m drill expenditure that resulted in the discovery of the world's largest undeveloped lead and zinc mine, and which is technically and economically feasible, you have to wonder just how independent this research is. (It is in the risked DCF valuation on page 10), and it is on this valuation basis Matthew Trivett is recommending we UCL shareholders switch into MAK. hmm.

I don't expect any payment whatsoever to UCL from Iran any time in the next 7 years, but a zero valuation? Probably not the independent broker research Mr Drummond is claiming?
Caveat Emptor while Drummond is still in charge of this company.

The MAK strap line should be "thieve to deceive", IMO!