It is only matched by the uncleverness of Mr Jordinson putting us into a project that requires cash (of more than two times our market cap), and, just as bad, a wait of two years, to get it to the same stage as the project we already own and which he is forcing us to give up in exchange (but while retaining control of it for himself so that his salary does not need to fall in proportion to the number of projects managed - a change of control of UCL's stake in Mehdiabad might require him to halve his salary?). He is not serving shareholders well if Iran regime change happens soon, and more to the point he is acting outside his core competency in making such a decision. He lacks both the qualifications and the interest for managing a project that is in effect, currently, a political play on events in the Middle East (he is a geologist with project management experience?). He hasn't bothered to learn Persian, he hasn't bothered to master any of the knowledge to manage a Middle Eastern political play in an informed way - he is just winging it - and, more to the point, he must be pleasing Dr. Al-Barwami no end - the latter understands the Middle East very well and will be laughing all the way to the bank at our expense at the prospect of getting a bigger slice of Mehdiabad.
On this occasion Mr Jordinson appears to be totally lacking in business acumen. (He also probably lacked business acumen at CRC, if he was responsible for loading it up with debt when it had no income - it went bust a year after he resigned as M.D.) He also shows signs of accounting illiteracy, thinking Sandpiper will be cheaper to finance by amalgamating with MAK (he is ignoring the Mehdiabad dilution cost - and of course in choosing to deny that fact to smooth background music in the last boardroom radio video talk he gave he is not exactly enhancing his credibility - he is perhaps in it for himself, not for us, even if he does own slightly more shares than I own). (His relationship with Dr Al-Barwarmi will have a greater net present value than any movement on his shareholding in UCL, so his loyalties will be to Dr. Al-Barwami and not to us. (Dr Al-Barwami can sack him: I can't - the net present value of an $800 a day salary is a great deal more than anything from the sort of movements that can be expected in the value of his shareholding.
No one can guarantee Iran regime change will happen soon, but my complaint is he is simply winging it to suit himself, and we deserve better. It is one thing to make an informed decision and get it wrong, but the thing I can't tolerate is to make an uninformed decision and then get it wrong. The very high probability of regime change coming to Iran very soon makes me think Jordinson is about to do the latter, and the intolerable quality of his utterances on Iran (in the Quarterly Activities Reports), compared with the former MD's insights are evidence he is acting right outside his core competency.
I have no idea if the Fordow enrichment plant is impervious to bunker buster bombs, but the Iranian leadership will not be allowed to acquire a game changer in the war of ideas in the Middle East, and the odds for them successfully doing so are not in their favour. Jordinson's uninformed decision effectively assumes the Iranian leadership will win. They won't.
Just my view.
UCL Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
