In defence of Rhod Grivas and AndrewShearer.Firstly, I feel the...

In defence of Rhod Grivas and AndrewShearer.

Firstly, I feel the need to explain the difference inExecutive Directors and Non-Executive Directors.

Two definitions are attached.

https://aicd.companydirectors.com.au/resources/all-sectors/the-differences-between-executive-and-non-executive-directors

https://www.investopedia.com/terms/n/non-executive-director.asp

Both Rhod Grivas and Andrew Shearer are Non-Executives and so its nottheir job to be working and/or managing the business every day. They’reresponsible for the oversight and monitoring of the Executive branch ofthe business. They’re also responsible for ensuring the board and managementhas the right mix of skills and experience to carry the business forward.

The Executive Directors, James Marsh and Joe Ranford, are the onesresponsible for ensuring the daily functions of the business are conducted inan efficient and professional manner.

I’ve posted previously on Rhod Grivas and Andrew Shearer first joining theboard of Andromeda (Adelaide Resources). Post #: 55278833

Rhod Grivas and Andrew Shearer were instrumental in three crucial stepswithout which we would not be having this debate:

1. Saving the companyfrom going into administration (with the help of recently resigned ExecutiveDirector, Nick Harding).

2. Identifying anincome stream to carry them into the future. Kaolin, which led to halloysite

3. Recruiting JamesMarsh.

In the early days RG and AS accepted 50% of their remuneration inshares at a time when the share price was in the doldrums. The share price wasat a level which most of you wish you’d bought and very few did because therewere no guarantees the shares would be worth anything in the future. To me thisshows the commitment of these Non-Execs to this company.

I’ve read numerous posts on “they don’t do anything”. Respectfully, Isuggest some of you need to do more homework. One complaint is that ADN don’thave the right mix of Directors and yet in recent months several new directorsand senior management have been appointed.

1. Joe Ranford,experienced Mining Engineer

2. Melissa Holzberger, experienced mining lawyer

3. Andrea Betti,experienced corporate governance professional

4. Michael Zannes,Chief Financial Officer

5. Eric Whittaker,Chief Geologist

Who do you think vetted these people? James Marsh would have input butyou can’t really believe that RG and AS were not deeply involved. This ismostly the job of Non-Execs since one of the main functions of Non-ExecutiveDirectors is to ensure the continuity of an experienced Executive and SeniorManagement Team.

Further, James Marsh and Joe Ranford have been neck deep in the day-to-dayworkload that they have little time to do anything else. And mostly norshould they. This means someone else has had to keep careful watch from ahelicopter viewpoint to ensure the right areas were being worked upon. Who doyou think has been doing this work? This is the job of Non-Execs.

While all this has been going on there have been other significantdevelopments:

1. Friendly mergerwith Minotaur announced, which has taken 8 months.

2. $30m placement

3. $15m sharepurchase plan

4. Natural Nanotechprogress

5. Eyre Peninsulakaolin JV

6. Two bindingofftake agreements

Who do you think has been working on these? Do you really think RG andAS were not involved in these decisions and the lead up work to make them?

You’ve all seen and heard the passion JM has for this business. Plus,Guemar and others have posted on JR and his enthusiasm. Well, in addition, I’verarely met or spoken to Directors (Exec or Non-Exec) with more passion for thisbusiness than Andrew Shearer and Rhod Grivas.

I can tell you further that if Rhod Grivas (or AS) is voted out it willput ADN back a year and maybe two because it’s not possible to have a newbiewalk in and understand the depth and breadth of what ADN are working on andkeep this on track. Many of you are probably invested in ADN because theyhave so many balls in the air. Not only the basic mining options of CRM, PRM,HRM, concrete additive, etc but the blue sky, potentially very valuable balls,that they’re struggling to keep up. Not all of these will come off, but some will,and shareholders will be well rewarded.

One more thing to finish. If RG is voted out and the work is significantlydelayed, I suggest the vocal minority will not be popular at AGM’s or Poochera.Reap what you sow.

Disclosure: I’ve recently spoken to RG, AS, JM and JR. 20 years or so ago I worked closely with Joe Ranford at the same company (Normandy / Newmont) as Nick Harding (who is still a Top20 shareholder). Aside from this I have no personal relationship with ADN or with any ADN directors except in a shareholder / investment capacity. I’ve also spent 35 years or so working in the mining industry and so I think I know what I’m talking about.