pre open, page-19

Wonder what EIM has to say about the latest announcement ? seems they are not overly rapt with management spending $13m on a J/V to purchase a $20m asset.

Comments from the End of August


Pluton Resources (a constituent of the Emerging Resources Company Share Fund portfolio) has again fouled its nest by making confusing and desultory disclosures about the maze of agreements surrounding its Cockatoo Island and Irvine Island iron ore joint ventures. So complicated have the agreements become that directors, themselves, appear to have lost track of the terms and conditions.

On Friday, directors were forced to acknowledge that they had not properly advised investors about the content of funding and joint venture agreements entered into earlier in the year. Today, they had to explain to the ASX why this had happened. A long history of having to backtrack on shoddily written earlier announcements has needed addressing for some time and it is good to see ASX tackle the company on points first raised by E.I.M. in May. Pluton Resources has a worthwhile project which should yet deliver attractive returns but, regrettably, these will likely come despite the people responsible for explaining what is happening.

http://www.eimcapital.com.au/portfoliodirect/daily_views0813.htm