@gutumike Morning Mike "As has been mentioned previously, a new...

@gutumike

Morning Mike

"As has been mentioned previously, a new mining company can usually take 7 - 8 years before it starts to produce any income, let alone make a profit, but look at the large number of successful mining companies which rode out that long 7 - 8 year wait for income and are now making huge profits."

QBL has been running the South Johnstone project for ... hmm ... how long now?

"The same will happen in the medical marijuana and hemp businesses, but we won't have to wait 7 - 8 years. I believe that we'll be seeing significant income within 12 months and profits within 2 years."

It is difficult to see how you can have it both ways.

Either your first proposition is accurate - that is - it takes 7-8 years etc. Or, it will happen in 12 months or two years.

"And this is not just a new business, it's a new business in a completely new industry."

And hence the questions around having the necessary skills at the board level as well as an independent board chair.

Might I ask if the question of board skills / independent chair a relevant consideration from your perspective?

"It's amazing that some people who invest in the sharemarket seem to have no concept whatsoever of the realities of starting and developing a new business."

It is also amazing - I think - that some investors seem to have 'no concept' of the fact that existing industry connections and knowledge are also crucial in any business. The current QBL board members have been 'in' gold, phosphate and bauxite (that one seems to be the base of the operation) - and then you move to MM?? Not wholly unreasonable but where are the contacts, industry knowledge coming from to grow in the MM space?

Here is some worthwhile reading for you.

https://hotcopper.com.au/threads/ann-results-of-meeting.3077600/#.W0VketgzbOQ

https://hotcopper.com.au/posts/21017900/single

https://jade.io/article/548909

(para 15)
"15. On 24 April 2017, an application made by the applicants (filed 12 April 2017) to vary the undertakings previously given by the Feldmans was heard by Randall AsJ. The variation sought was to enable the Feldmans, as directors of Paradise, to obtain a secured loan of $1 million from Queensland Bauxite Ltd (another company associated with them) for the purpose of funding legal and other expenses of Paradise. The application was refused."

In this record of the court, the directors of Paradise (i.e. the Feldmans) made an application to the court to obtain a secured loan of $1 million dollars from QBL for the purpose of funding "legal and other expenses" of Paradise.

This is the purpose of the points about having an independent chair and board members. It would be difficult to arrange a loan to an entity related to board members if the board are independent and or the chair.

It is also the purpose behind the, ASX's "Corporate Governance Principles and Recommendations" specifically, I refer you to pp, 14 to 19 of that document.

https://www.asx.com.au/documents/asx-compliance/cgc-principles-and-recommendations-3rd-edn.pdf

Some posters will bemoan the fact that I bringing this stuff up. However, unless there are other facts disproving that which what is easily found if one just looks, then I am not sure how it is possible to reflect on the 'astuteness' of some investors and their presumed impatience ("It's amazing that some people who invest in the sharemarket seem to have no concept whatsoever of the realities of starting and developing a new business.")?

Thanks