Email to Nathan on Behalf of Francesca Lee-Company Secretary. Most dont want to waste money for EGM, but these guys need to change.
Hi Nathan,
Would rather not resort to have members call a meeting. The arrogance of this board and management in not acceptable. The poor and/or lack of disclosure or updates on Prominent Hill etc. has been disgraceful. I would rather wait and see if the board and Mr Michelmore can get an acceptable outcome for all shareholders, but the credibility with this management is at an all time low. How can one of the best loved and run companies 12 months ago end up in the position it is currently is absolutely staggering and an indictment on management.
I would hope that if an outcome is achieved, that some board members and management will be stepping down, otherwise I am sure that a general meeting will be called by members. OZL need better accountability and transparency, just stating on paper as corporate governance is not good enough. The $400,000 you mention as the cost has only taken Mr Michelmore about 10 minutes to spend in previous week.
It also seems as Mr Jeff Sells the ex Oxiana CFO was not good enough for Mr Michelmore. I can see how the current CFO has done!
Board and CEO must resolve the mess they created, and hopefully not blame everything, and everyone else for their incompetence. Soon after they should resign from their respective positions.
Below are some comments made by Andrew Michelmore, it seems more appropriate for him to enter the field of politics, with some of the statements he has made.
I hope that the Board and Mr Michelmore start listening to the people they represent. The SHAREHOLDERS!
"We must have focus, and in the current situation we must also be careful in how we invest our cash" said the firm's chief executive, Andrew Michelmore Debt burden causes OZ to rethink spending - WA Today.com.au [25/11/2008]
"By closely reviewing our commitments now, we will ensure that we are in the best possible position to maintain our sound financial position and enable future development of our projects to generate growing value for shareholders" managing director Andrew Michelmore said in a statement OZ Minerals initiates review - WA Business News [10/11/2008]
Managing Director Andrew Michelmore said: "OZ Minerals is in the fortunate position of having a healthy balance sheet, a good cash position and an enviable suite of projects that underwrite the future growth of the Company." The picture being painted in the business media in Australia is getting more sobering by the day... Perth mining financier sees lower iron ore contract prices ahead - Mineweb [10/11/2008]
"The decisions we are announcing today will enable us to either eliminate or defer substantial cash outflows at a time when access to capital is more difficult than at any time in the last decade and when we are in the middle of re-financing our debt facilities" managing director Andrew Michelmore said in a statement OZ Minerals cuts projects and Hegarty - The Age [25/11/2008]
...Among other things they said: "We have a strong balance sheet, no net borrowings and the ability to generate healthy cash flows." Bryan Frith: Debt pushes down OZ Minerals - The Australian [10/12/2008]
...pipeline and a strong balance sheet, but was being forced to take tough decisions to safeguard its position as demand for commodities slowed. "We must ensure we protect this position we worked so hard to create so that we can realise maximum value for shareholders when market conditions improve" he said in a statement... OZ cuts Century output - The Australian [25/11/2008]
Kind Regards,
OZL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
