This email is in order to voice my disapproval of the $7 million loan between IRL and MON. As a shareholder i feel that that money can be put to better use working with IRL rather than achieving interest on a loan.
If all the company is going to do is loan out its capital raisings, i may as well have my money in a term deposit. As IRL is not yet cashflow positive and is still a speculative investment. If it were making profits it would be a different matter.
I feel that just because Mr Keirnan is a member of both boards, should not be enough of a factor to influence such a decison and the way it has been disclosed to shareholders, although legal, does not represent good business ethics.
The board, and in particular Mr Keirnan has lost a lot of respect over this matter, both from myself and other shareholders.
King Regards
Response:
Hi Prawn
In many respects this is an issue whose time is passed; Monarch has already started paying back the loan according to the agreed schedule; IRL will have all its money back in around 6 weeks time; and we will take on board shareholders comments before making any future loans.
On the positive side of things there are people who have sold out of IRL (and Monarch), and IRLs share price is low by any standards. IRL is targeting May 2008 to be cash positive out of revenues from the Surda copper project. This represents a significant buy opportunity for investors who understand the potential.
When we started IRL in August 2006 there was no way did we think we would have a producing copper mine by December 2007. Ask yourself how many other mining identities other than Michael Kiernan could have achieved that?
Regards
Eoin Rothery
Managing Director
India Resources Limited
IRL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
