Agreed. think the biggest opportunity for improvement in 2022 lies in communication and managing shareholder expectations. The phrase ‘under promise and over deliver’ comes to mind. Here are a couple of examples:
I recall an interview mid year when JB was asked about how production was progressing - he responded something to the effect of ‘really really good, we continue to progress to nameplate and then hope to push beyond that’. The market thinks ‘fantastic!’ But the reality is quite different and we are still many months away.
As mentioned, the recent ‘Operational Update’ due to the log washer shaft fault, started that we continue to target Nameplate by year end. That’s highly optimistic considering we have about a week of production before Xmas and New Year. The Proactive interview this week JB said we should be there this time next quarter!
Stage 2 expansion was earmarked for a February 2022 commissioning in every Investor Presentation throughout the year and as recently as September. However the company hasn’t ordered any equipment and has now pushed out the expansion citing ‘supply chain issues for long lead time items’. I think thats BS…because…anyone remember Semeru? We were meant to wrap up off-take with them months ago, the exclusive period was extended and has again expired and we have heard nothing. That’s why we haven’t pushed go…because we haven’t got binding offtake in place.
It’s these messy and inconsistent messages that spooks investors and can ultimately cause them to lose confidence in the management, dump and walk away. We need to do a much better job of setting realistic milestones and then surprising on the upside when they are delivered early.
E25 Price at posting:
$1.28 Sentiment: Buy Disclosure: Held
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