ANSWERS FROM QBL MANAGEMENT
Guys,
If you see a Like from me on your Question, it is because I have read it and forwarded it to management. I do not want to create superfluous posts that clog this thread.
Q: Was the Volcan deal a transaction or a loan?
Q: Was it approved by shareholders, and if so when?
Q: Has there been any money flowing to Volcan from QBL?
A: Firstly, there has been NO funneling of money to Volcan, as has been explained in our accounts; it was NOT a cash loan, it was a transaction done with shareholder approval 8 years ago!
Secondly, it was a mining asset that Volcan in fact invested in and the first $1.2M profits were to go to QBL, but the project did not progress and has not yet enabled a return of profits to QBL, which is why it is currently impaired.
Thirdly, this amount was NOT cash advanced to Volcan, but amounts of money that were to be paid to QBL from the asset. The suggestion that Volcan has taken money out of QBL for its own benefit is misleading, incorrect and false in its assumption.
Q: What is the deal with the Company using a House for an office, aren't there more suitable Commercial premises?
Q: Why is AGMPL charging these type of rents to QBL?
A: The rent at the Bellevue Hill office is at arm's length terms, at a cost that is a saving to the company compared with alternate suitable premises, and has been properly accounted for and documented/audited in all our Financials. The company is making significant savings for its shareholders and cash bottom line, and increasing productivity and functioning for the company's executives, by utilizing this split level dual facility, as an arm's length approved office to operate the business affairs of the company.
The structuring of charges and accounts, made by the administrative company AGMPL that manages QBL, a normal business practice, is charged at commercial arm's length charges which has significant administrative savings built into these costs relative to most other companies and commercially fair costs. All companies pay administrative and management fees, that's a basic part of investing in an ASX Listed company, and we are very comfortable that the costs that QBL pays for administration and management are on the lower end of the scale compared to our ASX listed peers."
We have answered these two questions first. There has been significant discussion in the thread, over many months, and even though the Rent situation should not be seen as an issue as it is not an unusual company practice, for many smaller companies that use these type of cost savings facilities during their development phase, it was obviously an issue that wasn't going to be dropped in this forum. The Board was happy to provide some extra detail and clarification.
Some more information on the Volcan deal has been provided above. Other information can be found in our main Financial Reports. Specific detail questions must be addressed to the Managing Director, Sholom Feldman at:
[email protected]. or can be addressed at our AGM.
We have now provided 4 reference points to deal with this question. We believe this shows our willingness to address this situation and also, what we believe, is a suitable response for an ASX listed public company to provide in an answer format, on an anonymous forum such as this. (Shareholder accountability)
Thanks,
Neil1959
HC QBL Authorized Rep
QUEENSLAND BAUXITE LIMITED
