esi fails to deliver : delays inevitable

In two seprate ASX announcements on the 18th November ESI made reference to Victoria Capital and the expectation of finalising a contract and updating the market. Both the chief executive and the chairman have made these comments.

Now 15 days have elapsed and no further details have been forthcoming. No update!!! I would say this has been a huge disappointment for shareholders. Promises not met result in delays and the market is usually unforgiving especially in these times.

With the year drawing to a close it would seem that a contract is unlikey to be finalise in 2008 and that the expectation will be pushed out to January, February or even maybe March 2009.

This will result in delays to the 150,000t plant no doubt.

ESI may have some great technology but the problems of the past still seem to haunt the current management. Expectations need to be met.


Here are the relevant sections from the announcements:

1. Letter of Intent Signed announcement 18th Nov:

"ECT Chief Executive Kos Galtos said this was a major milestone in the company’s history and he would work with Victoria Capital to finalise the contract by month’s end."

and

"Further clarification to this important announcement will be made over the next few days."


2. Chairman`s Address to Shareholders 18th Nov:

"This is a major milestone in the company’s history and he would work with Victoria Capital to finalise the contract by month’s end."

and

"We will be updating you and the market on this important announcement over the next few days.