We have been asked to vote to sell our largest asset , to a company no one has heard of , for what seems to be a very low price , at a meeting to be held offshore .
Let's start with the previous board . One guy was reported , at the AGM in Nov 19 , to be 'retiring' . Indeed , on 5th Dec they announced his final director's holding , then on 21st Dec they announced a retraction , there had been a 'misunderstanding' (really ?) , Then on 24th Dec they announced they were going to have a meeting to remove him and on 25th Jan they announced they had 'removed' him along with an announcement of his final interests , again ; though in the Annual Report of 30th June it describes him as 'resigned' ??? Then there's the Great Gunna and Billy Bass the singing fish , both paid up and out 1 month and a few months respectively , after the first guy. These 2 kept telling us how we were focused on , and committed to , becoming one of the world's largest , integrated , low cost magnesium producers . This until very recent times was the standard sign off . These are the guys who brought in the new board . And then there's Mr Liang who is still there but has anyone ever met this guy ?
Now we have a board who tells us our multi million dollar magnesium smelter , along with a license to produce 120,000 t/yr , is only worth ~A$205k . They say the dolomite is too difficult to source , the environmental standards are too difficult to meet and the plant may not have met its original approvals . Every other magnesium producer in China is not having these insurmountable problems and there is no magnesium shortage . So why so ?
Lastly and possibly most importantly , who are we selling this plant to ? Some mob called Worldcom Parkway International Trade (Tianjin) Co Ltd . Has anyone any information on who these people are ? We are just told by the board this is who we are selling to and for this amount . No information on who they are or how they came to be the 'successful' suitor . Why aren't we selling , if indeed it makes any sense to sell , to a magnesium producer who has the ability to run a plant and who would greatly value the license , or even a large aluminium producer , who purchases tens of thousands of tonnes of Mg annually for alloying ? Would they not value a plant like this and have cash to inject for any modifications required to realise a value of more than A$205k ?
So , for everyone who invested in a magnesium venture , you're now in an apples and pears play with a bit of Malaysian timber to PNG on the side .
This is smelly and its not just the singing fish , think before you vote .
And the meeting is to be held in Singapore ! Come on , treat shareholders with some respect .
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