He needs to be publicly confronted at the Gold Coast conference as to why it has taken so long to realise that GEMS path to market is the right one. Mr van WYK has a degree in marketing and an MBA, so
shareholders had a right to expect better planning and now to feel miffed by the expensive bungling since January.
We were mislead, IMO:
-several announcements by the CEO that we would have revenue in Q2-17
-export of 2 lots of rubies (most assumed that these would be sold within weeks rather than have to wait until October)
-implied value added by cutting/polishing & selling select stones.
(up to recently the CEO was saying that the selection of Thai cutters/polishers and auctions in the ME & HK was the way to go.)
There will be significant dilution if all items are passed at the upcoming EGM and add to that the spectre
of another CR at a very low share price and the company is doomed to be a lifelong penny dreadful.
To avoid that, IMO, we should vote no for item 3 and at least avoid dilution
in the short term. This would send a short-sharp message to the deal beneficiaries who just happen to be our CEO & our Director of Operations. (Regius) Our problem at present is not tenement acreage, it's selling the damn rubies to keep us liquid.
Perhaps we need a new set of directors who have the nous to read the market and conquest GEM's
customers taking us cashflow positive within a month or two. This is not rocket science; we have known
major buyers who can be taken out of the market before GEM's June auction with the incentive of a generous discount. We are better realising say 70% of market value now rather than running the coals
of another CR, IMO.
MUS Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
