You have copped a bit of flak and have posed a few questions. I thought I would give you a quick reply to kick off a discussion if that is what posters want.
I think you are right in that we should wait for the IER but I suppose that has never stopped this thread before, ie, a lack of information :)
You pose the question as to what impact on the SP a NO vote would have - all other things being equal - a reduction in the share price, most probably. However, STO have signaled their hand that they want ESG so I don't think a NO would deflect their intentions and the market may reflect this to cushion the price.
Of course, odds are in favor of a substantial price drop initially.
You also indicated that the market would have reacted negatively if ESG had announced that there was no reserves booked for Tintsfield & only provided the reserves figures for the other 2 seams. Possibly, but at least the market would have been assured that ESG was providing timely, accurate and complete information to the market. Something that perhaps they cannot be accused of until the IER (well actually, not timely)
We don't have an auction at the moment but as long as my 'you know what' points the ground I will NEVER tell someone offering me $$ for an asset that I will eventually accept the offer and it is not too bad.
We can't say that ESG has a deal it can live with - it is more correct to say that the BOARD can live with it & just cause they can live with it does not necessarily mean WE can live with it or SHOULD live with it.
ESG Board after a NO vote - easy, get rid of the Chairman and the managing director / CEO. ESG pays about $2.5m in wages nad has about 60 employee (directly & indirectly) but probably about 40 directly (not sure of this).
To manage this number of employees we have 6 directors and 3 executives getting paid a fair wack in wages and, of course, very cheap shares.
Pull back wages of the execs and directors to truely reflect the size of this company and put REAL incentives in place that actually harness the interests of Directors with those of the shareholders.
I think it has been pretty easy in ESG shoes to be honest - a pretty good wicket and not much to show for it.
Who to sell ESG to later on - well - the same entities that we have been discussing for the last 18 months - just this time we put a value on what we are worth by shoring up reserves, expanding Wilga, ERM agreement - the biggees will come for the very reasons we have outlined over a long period.
Get stuck into proving the triple laterals and get Tintsfield sorted out.
STO will walk away with ESG because of sleepiness at the wheel IMO - get people in there that know how to prove up a resource, are hungry and are prepared to build a company.
IMO (without further info yet) it is appropriate in a negotiation to say NO and keep saying NO until you get a fair value. STO need the gas, they have showed their hand and all we have done is show our bottoms.
Anyway, that is what I think for what it is worth, no grenade at all, just my opinion.
All the best mate
ESG Price at posting:
77.0¢ Sentiment: Buy Disclosure: Held
