What’s happening at Berinka Pine Creek, page-40

Changing is not that difficult, getting the right management is most important.

Just to share with you the FFX story, a very successful gold and lithium company.

The company two board changes caused mainly by disgruntled share holders.

The company was first known as BGS a small gold exploration working in Mali. The CEO then was Kevin Joyce who knew the area well. He also appointed a local National Manager. The company managed to acquire tenements which was rich in lithium in Goulima in West Mali. He was going to make a quick profit selling for over $40 million. Shareholders were not in favour and they thought Kevin needed a stronger board to assist him on other aspects. An EGM was called but it was not effected as the directors resigned and unfortunately Kevin resigned with them. It was a disaster because the selected director that was appointed brought in his mate as Chairman. He resigned after 2 weeks because of a conflict in interest. The new chairman brought in his own CEO and other directors.

The company also had about $16 million and was running out of Money and when challenged about their work they chose to walk rather than stayed around. These two boards did not have skin in the game. They claimed that they have connections in Europe and everything was sweet. Another new board was appointed, the existing board with the new Chairman. When the CEO resigned he became the executive Chairman, bought shares in the company, appointed a new CEO, bought the new gold plant for $30 million appointed Macquarie Bank to find a joint venture partner for the lithium project. Now Gang Fang is the new joint venture partner for the lithium project at $240 million for 50%. Gand Fang also secure $130 million working capital for the project. The company also has a name change from BGS to Mali Lithium Ltd now to FFX.

It convinced me now more than ever that skin in the game by managemet and capability of the directors are more important than anything for a successful business. TIM GOYDER'S group is a typical representation of a successful management. MAN's management comes out worst. Unless Allchurch wakes up from his complancency, there won't be any future for the company.