Lifestyle company 101

From the “money really does grow on trees” department,
I guess the US$68M loss for 2015 was finally the dollop of largesse that finally sunk the good ship “Nice Lifestyle”. The management is being changed for, you guessed it, some of the same. Nice gig if you can get it.
For years the board and management have been in a fabulous relationship whereby shareholders funds have paid handsome salaries, regular trips overseas, bucket loads of options and preference shares and all in the name of building a resources business with mineral assets in PNG.
Lets look at raw scoreboard of how shareholders have fared

FY 2008
Chairman – McDonald
MD Gooding – Remuneration US$707K
CFO Lennon
Income US$1108K
Profit $US12.3M
Contributed Equity $US274M
Reserves (US$8.8M)
Retained earnings (US$170.6M)
Total Shareholders Equity $US95.2M
Share price at 31/12/2008 7.4 cents
Shares on Issue 661M
Market Capitalisation $50M

FY 2015
Chairman – McDonald
MD Gooding – Remuneration US$918K
CFO Lennon
Income US$80K
Loss $US68.0M
Contributed Equity $US304M
Reserves (US$5.0M)
Retained earnings (US$290.6M)
Total Shareholders Equity $US8.7M
Share price at 31/12/2015 6.7 cents
Shares on Issue 920M
Market Capitalisation $61M

So in seven years shareholders have contributed an extra US$30M (totalling $US 304M) , losses have gone up by $120M and shareholders equity has been cratered by 90% from $US95M to under $US9M ( that’s over 90%).
GULP. I have to repeat this so I know my fingers on the keyboard aren’t tricking me.
So in seven years shareholders have contributed an extra $30M (totalling $US 304M) , losses have gone up by $120M and shareholders equity has been cratered by 90% from $US95M to under $US9M ( that’s over 90%).

This is astonishing. Actually it is entirely depressing.

The shares have had a ride up then down again. Over the 84 months between the dates I count the shares went up 16 of those months and down 68 months (roughly using a long term chart)
What is usually considered reasonable is that a public company will use shareholders funds to build the business, take appropriate risks and eventually make profits and return capital to shareholders via dividends.
If anyone else knows other companies like this, could you please post here. If we get enough data we should send it to the Australian Shareholders association and the ASX and have a template guide for investors to learn from. The history on this company will make an excellent case study for what investors should be on the look out for.