The new man on the Board, Paul M, has yet to make his presence felt and there is still the hope that he will bring his own experience as a geologist to bear and will work with Matt to design a programme that might lead to some recognised milestone or other being reached.
But, it does need to be good because I cannot see how further capital can be raised at a reasonable price unless they can deliver a good result and assure the market that the experience over the last 21 months will not be repeated.
I, too, am a bit concerned that about 25% of the capital raised last time has found its way into the pockets of the corporate manager or will have by 30 September. $9.82m was raised net of expenses. The Admin charges from the quarterly reports from 1/7/12 to 31/3/14 totalled$1.99m and $250k was estimated for the current quarter. Assume another $250k for the quarter to 30/9/14. Total admin charges: $2.49m. That is 25.4%. The cynical amongst us might say that is 25% subject to roundings. The more charitable might suggest that it is a strange coincidence. Either way, it is difficult to see what value the Company has gained from the $1m/yr admin charge. They certainly have not spent much on presentations or communication with shareholders and perhaps they might have afforded a rig that could actually drill had they not had to support the CM.
This might be one for the auditors to comment on.
SBR Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
