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13:58
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Originally posted by precis:
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I'm amazed Quamdives that you found an adjective to describe Clifford. I wouldn't have thought that was possible. In his tenure we lost $400 million in market cap. and on his departure the Board said they didn't know anyone who worked so hard. Like they wanted to rub it into shareholders. How would anyone describe that sequence of events. As for trust??? The answer is you can't trust them. There were too many bad decisions over an extended period of time. The Clifford appointment (I warned his spending would have to be reined in at the time, based on his Solid Energy NZ performance), the Dragues purchase (it's never come close to it's predicted ore grades), mining Hera for months at a cost of $6000/oz, scrapping the dividend they proclaimed they were intent on keeping, moving head office to Brisbane (at extra cost for leases etc) to keep management finger on the pulse!!! I'm sure other people could add to the list but it is clear that shareholders have not been at the forefront of the Board's thoughts. How else do you accept the Board decision to buy Dragues without shareholder approval. When I examined the grades and resource at Dragues I told my mate the purchase didn't stack up, adding "we've taken all the risk". So I don't believe the Board is working for the good of shareholders and nor do I believe you can trust them. I too smell a cap raise at a terrible price for those of us who held shares prior to Dragues when we were mining profitably, had less than 900 million shares on the register, had around $80 million in the bank, share price was 64c, Federation was already discovered with the likelihood we'd hit $1 once it got ticking. Yes the looming equity raise is weighing heavily on us, as is the lead time to earning dollars from Federation, and as is the lack of trust in the Board. The first thing I'd like to see now is for them to take a remuneration cut because the market cap doesn't warrant the current level, and for each board member to take a meaningful stake on the company share register.
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Well, you gotta admit it takes a lot of effort to blow $400 million in such a short tenure.
(20min delay)