Market Cap

IAU is now trading at 50% of its cash value:
Current Market cap = 9.5c x 370M shares on issue = $35M total Market Cap
Cash on hand = $70M (as of March 15) / 370M shares = 18.9c per share cash backing.

Clear illustration that the market places zero value on Mumba. Based on the above one could argue the market considers it a liability. Had a quick scan through the last Annual Report. It emphasises that this company is simply a cash cow for directors and shareholders would be better off if some raider took them out and wound up the company (shareholders could potentially get a 50% premium to the current share price even after budgeting for liquidating the Co etc). Agree with a previous commentator that nothing will happen at Mumbwa for many years (meaning management will simply churn through the cash pile and ride off into the sunset with not a care in the world one day). Keeping 8 directors and 7 Board members going is not a cheap exercise.

Some examples from the 2014 remuneration report:
Scott Lowe: earned $814K in 2014. Also saw mention of a retention payment of $525 which was payable on 2 Jan (as if he will go anywhere else earning so much for doing so little). Last reported base package was $525 plus 50% STI

Co Sec: $345K plus 30% STI
COO: $361 plus 35%-50% STI
Chief Geo: $320 plus 50% STI

These salaries are totally unjustifiable for this size of company and the low level of activity. Cannot imagine how little the Co Sec needs to do on a day to day basis. The geology and FS studies are being done by a contractor. What does the geo do to earn$400K plus a year? I could do this job part time from home (and this is no exaggeration). A shareholder revolt is what is needed but sadly probably wont ever happen. Maybe Lloyd Millar will do something radical as this one is ripe for the taking by a raider!

Fascinating to watch......from the sidelines