I held shares in ICG for more than a couple of years. My buy-in price was substantially higher than the current price, I was losing a lot of money based on my averaged down buy-in price.
Over that time I saw time after time what I consider were many dumb decisions by mgt, but because I was a shareholder I was loathe to stir the pot and say what I believed at the time. My thoughts were that if Chanape ever came up with the goods then the share price would finally solve my problem irrespective of all the frustrations that I copped over the time of holding the shares.
I found that despite some interesting technical potential at Chanape, what I would consider the odd day of sunshine in a continuing winter for the whole time of my shareholding, the mgt continued to spin the story out, earning their salaries during the long time between applying and getting the 22,000 metres granted, that took more than a year despite mgt continuing to suggest it was just around the corner. I think they turned that corner more than 360 degrees with the spin!
Then the crazy capital raisings, like the $3 million capital funding through Acuity Capital, and despite that then announcing the $2.15 million rts issue and placement done at a 41% discount to share price that really clobbered the share price and diluted the shares forever more!
All along mgt got paid, not only that but the MD also got more shares at the last AGM to "to incentivise him", despite him already having a squillion shares!!! I just passively accepted it all.
Eventually once we started drilling this year I realised that the technical reports were also full of promise or spin, to the extent that I really didn't hold out any hope any longer of getting my money back. So a few weeks ago I sold out. I kept watching the share price, it hardly moved. Then I noticed an announcement that the Chairman had sold some of his holdings. What an amazing thing to do! OF course a director is allowed to sell any time he wants, but it does send a message, and that message isn't one of confidence in the company's fortunes. I felt justified with my selling. Then I noticed this week that ICG has announced "an option to acquire" another base metal project in Peru, only 130 kms from Chanape. That gave me further justification that ICG was now seeking to find something to give it another life. Clearly Chanape is not what it was cracked up to be, and realisation of that is evident by the mgt decisions lately.
And now I notice that PLP has basically lost interest in extending its rights over the tenements next door.
I am now free of ICG, also free a of many thousands of dollars that I wasted buying into the company, but much wiser. For sure I would be careful to buy into any company associated with the mgt of ICG, either they are just unlucky, or maybe something else. I made my own decision about them and about my shareholding in the company.
Yes I am the dumb one, I wasn't forced to buy the first shares or the successive other shares I bought in the company. And for a long time I was hooked because of the falling share price, I simply didn't want to lose and kept on hoping for a change in luck. It never came.
I am sure this will sound familiar to a number of current holders in ICG, and each holder has his own decisions to make re ICG. I have been free for a while and have started to trade/invest in other companies, and have had some wins and some losses, but I won't get sucked into the spin again. I will cut a loss much sooner, I will not hold out to live in hope any more.
GLTAH
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