Well well well....... I went to the meeting and to get straight to the point - it is a pathetic board from a business management point of view. These guys are out of their depth, the potential will not be realised quickly and efficiently with such poor business skills. How can you build a plant in a special economic zone, be working so closely with the Russians, and 5 years down the track realise that you have to pay 55 - 60% tax? Now by their own admission they are paying a fortune to have a Consultant to work out what minimisation strategies can be used. Then they assume 33% tax in their forecast, which dont forget isnt a forecast but just fanciful dreamtime numbers that are not real, this is by their own admission. They have not achieved what they said they would - sales, quantity of product manufactured, etc Now we have to incentivise 21 scientists - here comes dilution. Then we will have a capital raising, get ready to put your hands in your pocket and for more dilution. It was a pathetic presentation, the speakers are for from public speakers, I went to the bar when the documentary people were presenting, did they mention who was paying for Igor the cameraman and the reporter to come out from Russia to film this? Why didnt they hire a local cameraman?
Oh, dont forget we do not have enough employees, oh yeah also everything that was said was not fact, but for illustrative purposes,oh yeah also the budget for the new plant is overstated by 30 million(I think), so why put up as a number when you know it was wrong. Those who were noy there may have trouble understanding some of the comments - sorry. 33% tax forecast, current reality is 55 - 60% by their own admission. Forget about franking credits of any significance, how can there be 30% aussie tax in 33% overall? They need people with better business skills. Bit like Chemeq where they thought they could do it all without these skills. I cant believe the positive spin people are putting on this meeting, there is a huge problem with boards business skills. Dont forget BPO - we only now realise that they only have 2 full time employees, but we have given them licence agreements but they are not conducting many tests so there will ne huge benefit from these agreements, so we will now join the board and ramp it up. Very poor form, surely any business person worth their salt would have sorted this out prior to the agreemnt? Anyhow must go, I look forward to reading your comments later today
SLA Price at posting:
52.4¢ Sentiment: ST Sell Disclosure: Held
