First off for those who can't make the AGM please send your questions through to
[email protected]
Birimian have the cash, the rain is gone, so lets
get drilling!! No excuses not to have this second drill program "fast tracked" and get some decent results. Hopefully we get a revised target for our JORC!
As for your questions @focca you did ask a fair few mate. I've done my best to answer them for you.
If (hypothetically speaking) the board member doesn't get re-elected, how long does it take to get a replacement? To find a chairman is never an easy task. Lets be honest when we say "just get someone else in", "get a tier 1 chairman" its not like we just pick the next guy who comes along. If WW isn't re-elected (just for arguments sake) I personally think it would take a couple months to get a good replacement. In saying that it doesn't mean the day to day operation of the company would change. We would continue drilling and the SS would still progress.
Will this have a destabilising effect on the stock / share price? To be honest again, yes it will. It can be viewed one of two ways. One that the company is in turmoil and people may get spooked and sell. Two being people are glad to see the back of someone and it may re-store short term confidence until a replace is found.
Will instro's that could be possibly watching the stock view this as a negative versus their investment strategies / thesis? I can’t speak for insto’s obviously but some may see this as a very bad move when we are this far advanced. Some may see it as a good move as the company has simply outgrown that Chairman and someone with further knowledge in the region is needed. Insto’s often look at management to see their history and if they have a successful past then they are more likely to invest.
Reputation in business is essential. All I can say in my personal view at the moment we don't have any on board, so what does that say?
Will the substantial share holder view it as a negative? It depends on their personal opinion and how they vote. Everyone is different as you can see form the differing opinions on here.
Will any of the other T20 holders view it as a negative? They may do. In reality they are the ones controlling the vote. More shares=more votes.
Will any possible Chinese JV partners / investors see it as destabilising? This is such an interesting question because I spoke with a large shareholder today that has a history in dealing with Chinese clients who just happens to be in a financial role. They told me that relationship
building with the Chinese and establishing trust is a key fundamental in doing business. Therefore it would like have a negative effect if our chairman was to go in the eyes of the Chinese. Obviously if they want the Lith bad enough I assume they won’t care who is in charge, they just want the product
How would we have gone if it wasn't under written? That is normally the role of the underwriter. They guarantee to pick up anything that is not subscribed. It is essentially a risk they bear. Obviously when first taken on they believe they can sell the shares at X price to their clients. The underwriter will get those shares at a cheaper price than X usually and they take their portion.
Would the take up of the rights issue been as successful? The underwriter would not take the rights issue up if they did not believe it could be successful
Personally it was a total no brainer so did we really need an under writer? The underwriter was there for the situation that supposedly happened, it wasn't completely subscribed. This may sound crazy but if it was wildly over subscribed then it would seem that they were issued too cheap, meaning the company could of raised the price and essentially raised more capital.
Would the funds without an under writer have been enough to progress the Li project? You can assume so but this is kind of irrelevant to be honest (not having a dig either mate). The underwriter was used to help increase exposure. The underwriter pitches Birimian to everyone and does all the hassle for us. The paper work and legalities can often be time consuming and costly, those "expenses" are born by the underwriter usually but not always.
Placement being offered at a 17% discount? They are always offered at a discount. It was calculated on a VWAP and then discounted. If it wasn't at a discount then there would be no incentive for people to buy in, they could essentially buy at market price. The discount kind of guarantees the funds as current shareholders see the value that is automatically being created when they buy in.
Obviously this project won't be built over night, but ticking off important steps along the way and creating shareholder wealth is very important, if we close at this price next Friday it will be 7 months and not one cent added in value. Thats before we had any drill results and all the other good stuff. How can we go backwards after all this? In my eyes it's not the market and lithium sentiment, yeah the sentiment has cooled but the market also reacts very positively to good results.
We all see the trend of "selling on news" to the point that this stock has become very predictable and it erodes confidence. That can be changed quickly and in my eyes need to be done. We as shareholders need to feel like we are on the same page as the directors.
As per my conversation today
"the register is very tightly held, meaning that when a financial institution comes along and wants in, the people controlling the share price, (if it is being controlled), will lose control of it. They won't be able to hold it down and we could see a very large spike then" and it couldn't be more true in reality, we just need that investment......
