Trying to join the dots a bit here, previously these guys have been looking at moderately sized opportunities locally in gold that I think made some sense (for the size of the company). Now we are looking at a project that is in a challenging jurisdiction with a huge capex build. Seems like chalk and cheese.
I also note this announcement is signed off from the Chairman rather than the MD when all others were signed by the MD, does this mean it is the Chairmans deal?
Thought that would make it worth doing a bit of a look at what the chairman is doing. Looks like he has his hands full over in the west taking on the KIN board and that looks like it is getting pretty messy. Looks like lots of money being spent trying to see who has a better 'record'!! Not sure what part we (MHM) are plying here??
Also noted he took out almost as much as the MD in 'consultancy fees' last year, MHM is supposed to be a cash box and quite a bit was made about running it lean so why is he making over $150k per annum?
Looking at his last gig (that I could find) Ascot, now delisted but the executive package that he negotiated was eye watering, is that what is next here and is that why we are looking at such a large project (to disguise the size of future equity packages?). Another point of massive dilution for current shareholders
This deal feels like one where we will forever be undercapitalised and our equity will be vaporised. Basically a deal done for others rather than current shareholders.
The chairman is up for re-election at this AGM, I will be voting against his re-election.
KB
MHM Price at posting:
3.5¢ Sentiment: Hold Disclosure: Held
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