frr27 Sep 2018 11:22
Just though I'd extend my Frontera fan base with the latest note from Mr Phillips, Spa
Frontera Resources (FRR LN – 0.32p) – Obscene:
Today’s results statement beggars belief. The G&A is still close to $7mm (annualised) despite such limited progress on its asset base. In 1H’18, G&A is almost half that money spent on advancing the project. In 1H’17 it’s worse, as the ~$3mm G&A bill was 67x that spent on drilling. Just in case you thought that was an apparition, the 2017 full year G&A was $7.1mm, some 6.4x that invested in the ground. A further point of note is the fact that all of 1H’18’s G&A was paid in cash, opposed to ~$1mm in shares in 1H’17.
That management continue to draw such large payments from the Company in the face of such rampant value destruction is disgusting. What makes it worse is that after so much money spent in supposedly advancing the asset base, that nothing has been done to improve its understanding or selectively develop the horizons. In short, we believe that this Company is an abomination and its management obscene.
Any shareholder that does not now either exit the share register or agitate for the management team to demand: (i) that management pay be reflective of the Company’s achievements and value creation; (ii) a clear forward programme; or (iii) a full review of management performance, are complicit in supporting the Company and management in this charade. Getting funding for hard working professionally run companies headed by teams of properly skilled people is hard enough without companies such as these polluting the sector.
Ends.
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