FML 7.14% 15.0¢ focus minerals ltd

info needed to make decision

  1. 67 Posts.
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    I am trying to think about the upcoming vote dispassionately. I have to disclose that I see the reason for this raise negatively rather than positively. That is, I suspect the team just has not delivered and it has run out of cash. So before facing shareholders with the news, they create the cornerstone story and hope to smooth it through the existing shareholders.

    What I worry about is that the information provided to help shareholders make their decision is usually so muddied up that it is difficult to know whether to trust the management (again -sigh) or not.

    The other thing that happens is that the raise is presented as the only option. Can anyone honestly say they think the board is going to present a reasonable counter-option?

    What info do we need to make an informed decision?

    1. How has our cash performance been since last update?
    2. How about profit performance?
    3. Leaving aside the board's desired "growth" projects, how has our production progressed?
    4. Having regard to 1-3, what does the board intend and expect the company to do if the shareholders reject the raise?

    Any other ideas?
 
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