LMG 1.02% 5.0¢ latrobe magnesium limited

It's rather obvious from past performance that LMG leadership...

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    It's rather obvious from past performance that LMG leadership have very poor judgement. Never in my time as a shareholder has a milestone or announced target date been met. You would think that after continuously getting it wrong for 12 months, that they would say "We'll give ourselves a bit more time to meet our targets given we have been over optimistic in the past", but no, they couldn't exercise judgement based on past observations.

    To boot we have a MD with accountacy background, yet the financials are a mess and plugging holes by subsequent capital raisings with no communicated financial plan for operating this demo plant.

    There is a lot of explaining to do however I don't think we will get satifactory answers. DP has to step aside soon and allow a new CEO to be appointed who has good judement and keeps their finger on the pulse, so to speak. That said, I would be keen to see DP stay on the Board for a few years.

    I'm not expecting anything massive in the sp this month. Only when they demonstrate proof of process for the market to see that the extraction process is viable and profitable we will get internationl interest that may start driving the sp upwards. They can then do the finacial modelling which I hope this new CFO has the capability. If the extraction efficiency is poor rendering the process marginally profitable then the sp will dive.

    They need to go full steam ahead on stage 2 once they produce Mg ingots(including monthly reports on stage 2), else the Company will stagnate and sp will slowly grind back to near 5c.

    There is an enormous amount of work to do in communicating with shareholders and the market. To be honest, I'm not sure if the current management and Board are up to it(apart from this new CFO - let's hope he's not a dud). Time will tell.
 
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