...promote, communicate, reward by dividends!

To shareholders both long and short term and any future shareholders who like to see rewards on their investments.

I feel UML needs act on to gain real positive interest back in the company from the market above all else by undertaking the following; Restructure, Conserve, Promote, Communicate and Reward by Dividends.

As long term holder and substantial at that have had to endure the many frustrating years I can only say at that. I share the pain and grief on what has occurred or not occurred with developments and non-developments over these many years. I respect both longer term and recent writers, too many to mention here! There have been many great comments, input and thoughts from all viewpoints. These have helped us long term holders over the years hang in there and provide some hope in the future or for the future!

I really feel there needs to be some fundamental change in management within UML, having seen the share price slow decline from nearly $1 to a dismissal price of now 6 cents. How can a company whereby shareholders (public money) be raised for capital upgrade works of $70M years ago and have a share price drive a slow and continual decline to this level? As a shareholder it’s a disgrace! Hindsight becomes a good friend!

There needs to be more general accountability and responsibility in management styles and practices; it’s the shareholders money they are handling. Income they earn that had been initially raised from trusting shareholders based on information they provided! They still get paid and receive nice golden handshakes, if leave. Whereas, it’s shareholders money gets wiped out or whacked harder by more ruthless administration overheads that has no real bearing on the production and output for a leaner productive producer with results and rewards.

Misfortunes by management decision making has been a total wreaking ball to its shareholders and the share price reflects. As a shareholder along with other holders, have the right for more accountability and responsibility by management. They are in the hot seat to make the company perform and reward the shareholders for giving them the opportunity to do so.

I wonder where UML would be if they had just investigated the $70M in other fund managements or invested in other blue chips stocks, they could have boosted cash in the bank to $400M or even far greater over these many long years, its baffling to think how the share capital funds could have helped investors in the long term. Many lost opportunities in hindsight! Many incomes have been earned/ gained out of our shareholder handouts.

There needs to be a new approach now by management in UML. Stop dithering and start earning your keep! Where’s my return on investment based on your decision making, how many years or decades do you need? There should be no further capital shareholder raises. There are enough shareholders now after the merge has occurred.

I propose the following for UML as a positive approach going forward in the future and for the shareholders and to more importantly any new or future shareholders.

1. Restructure.
Cut all waste within the company, at the lower level and importantly at higher level. Costs of production are far too high. The administration over heads is far too high, which can wreak the bottom line in costs. The doers in the company are the ones who make the company make profits. How much are we spending on contractors, are they paid on performance based, may be reverted to fixed term staff roles. Be smart and lean in spend and decision making, ask what value am I making to my shareholders now and in the future with at minimal risk.


2. Conserve.
Conserve cash in bank bottom line gone from $70M to what $24.5M with a share price of nearly $1 to nearly 6c now and UML is actually now producing 40,000 to 50,000 ounces per annum. Conserve cash unless short term risks are far weighted out against long terms gains. This seems to have gone a miss altogether. This should always be based on a shareholders interests and returns. Is this just a shareholder dream gone wrong?

3. Promote.
The company needs to really promote itself far better than it has been doing in the past, sitting idle fat dumb and happy has no recourse. It’s a competitive world out there and there are many companies where people can invest. People are more conservative today and really want a return on investment, otherwise why would people want to invest in the first place.

Promote, I don’t mean spend millions on jet setting around the world giving glossy presentations to individuals. Focus needs to be on big businesses, institutions, fund managers, Superannuation groups, even banks of all types etc. Company needs to walk the talk and really earn their keep here. Have faith within the business and sell itself as a company to whom why one wants to invest in above all else, in this competitive world.

When there’s downsizing or job losses in other company’s UML should out there in the public eye promoting itself in anyway it can to say we are here and all going strong from base to base and still employing for further growth. The public eye can see then what’s going and the company develops a reputation of going places and is confident in it’s people the workers and its base too growth into a rewarding enterprise despite the negative’s going on around the world.

The company needs to Promote! Promote! Promote! itself in anyway it can and not sit back and watch other companies and the world pass-by. Earn the rights of the shareholders and earn your keep.

The management should also invest in the company to show shareholders they are serious within the company plans and strategy and direction of really going places. Walk the talk and promote this to gain respect in the investment world.

4. Communicate
UML really needs to step up the mark and communicate its business better in the competitive world. As mentioned there are many companies to invest in; UML needs to make the name known to as many investors, larger groups and organisations of investors. There are countries that are buying gold in the hundreds of tonnes, what is UML doing to get out there say to hey we are producing and investing in a brighter future, come and invest with us.

There needs to be far more communication with the shareholders on what is happening within the business, more transparency. The ASX announcements every three months are far too long in this economic climate. What’s going on with all its invested interests how are we improving in cost saving, what they are really doing, promote safety of its workers as they are the ones that bring in the profits at the cost effective low cost base. Are the workers happy with working with UML, happy workers reflects is a functionally sound company. This insight into the company what it’s doing on all fronts and walk the talk and really grow the business.


5. Reward shareholders by Dividends

People want to invest in a company and be rewarded for investing. UML needs to invest and focus on its shareholders for future growth to the company; it can develop a reputation of pure growth to its shareholder base. Continual raised capital via shareholders does nothing to the value of shareholders apart from dilutions and lead further dismal share values.

Borrowing money from the Banks shows shareholders they are serious in the fundamentals of the business to future growth. Don’t invest in golden handshakes, only reward should be if the business has really taken off and shareholders are benefiting from the fruits of sound decision making and real performed growth to the business that is measured by shareholder reward.

UML has invested a lot of money in the business without much reward back to shareholders which is long over-due. Give the shareholders a reason to invest in the business and reward them for doing so. How many more investors would the company create by valuing its shareholders? This would help market capital growth?

UML could actually make investors come back in droves like back in the gold rush days. It’s in management hands to do so. My view there needs to be more chop chop action at the management level. Everyone as investors wants that pot of gold on the horizon so make it happen!

Good luck to all and hope that enough responses lead change in the company at least make management understand enough is enough! Time to earn your keep and help reward us as shareholders for we have earned our keep to and have invested our hard earned money in UML.

I been harsh on the management but the reality it starts from the top and feeds down to the workers to make the business grow and grow! Importantly to make head way to really promote its self not just as a gold producer but to the world of investors, whom why they should want to invest in the company based on the sound fundamentals it should be portraying.

Look forward to your views and comments here; mine have been just thoughts and opinions above!

Please do your own research, as I have done mine and got squat in return, a harsh reality.