The following extract from the March 2014 presentation illustrates the steps that are required for the company to realise future production. Note that it includes a feasibility study, although I don't quite understand the apparent change from 'bankable feasibility study' to 'feasibility study' ? Are management trying to cut corners? Note my comments in red.
Unfortunately current management's growing reputation as a bunch of overpaid amateurs who IMO are fast becoming famous for achieving virtually nothing in the last 6 months and spending $100 million in three years prior to that, now makes it extremely difficult (if not impossible) IMO for them to attract adequate funding without losing control of their privilege (bestowed upon them by shareholders) to manage the company. All this means that IMO the project is unlikely to proceed as planned under the current regime.
Note:
IDC had a suitable JV partner (financial and technical) back in 2010 in the form of Kingsgate Consolidated. Yet the board and management never bothered to explain to shareholders as to why they terminated that agreement?
A Bankable Feasibility Study was also financed and promised to the market and the PNG Govt. within 18 months. That was when the option to acquire Mt.Kare was exercised and finalised back in April 2011 (see below). Yet here we are over 3 years later and $100 million later and still no BFS....a prime example of the board and management failing to deliver on time and as per the plan.
So the question now is how can the current board management honestly expect wealthy investors/financiers to trust them & hand over the millions required to advance the project?
Answer (IMO): Any JV/funding arrangement would need to be agreed under the terms of the incoming party and one would think that would have to include tight fiscal controls including substantial pay cuts to the CEO & CFO, a review of all positions and expenses and a complete severance with the current corporate advisor who has milked the cow at shareholders expense for far too long IMO. I also believe that some experienced new blood to steer the company into production and win back the confidence of shareholders is required. All very achievable given the potential reward on offer for any incoming financier/partner down the track.
Note: my opinion should not be relied upon nor considered as advice of any kind. Please DYOR.
