RE: My Shares17 Jan 2025 22:54
It was good to see the update however in my last more detailed commentary I suggested I saw traits of the 'old company' - this weeks RNS demonstrated that in it's entirety. Why you may ask, let me explain.
It is essential the market is fed regular news-flow, in the past I discussed this infinitum with the Stratex directors, they always batted away my suggestions and continued to insist that they were above your usual AIM outfit and preferred to operate their way. So be it, that was OK when they were selling projects for £5m+ but when the company fell on hard times lack of news hit the share price hard.
If you examine the last RNS you will see it covered Senala, Muratdere, Bibemi & Mbe, all of these projects could have received an RNS individually across a few weeks, this would have allowed the market to digest, invite BB discussion, generate interest and most importantly increase share volume to counter the wretched Lanstead selling. In actual fact I believe this BB contributed to that RNS and again IMO it shows some lethargy creeping in to the company.
In a nutshell I simply do not think the BOD understand the mechanics of AIM.
Moving on I still am aghast at the salary levels of this outfit, think of it this way, if this company was propositioning on Dragons Den asking for investment what would the outcome be when a nil revenue company asks for BOD renumeration of £400k - £450k pa and then demand bonuses if they deliver what they are already paid to do. I think you would get 5 'I'm outs' - they would be leaving the floor empty handed.
It is worth noting that most of the interviews seem to be conducted from home, make of that what you will. My view is the company does not need a £100k+ pa CFO nor a £100k pa geologist on the payroll, no cut backs in salary have occurred despite atrocious market conditions, many peers have cut to the bone.
A quick comment on share purchases of the CFO who was appointed mid 2018, by May this year would have taken circa £750k in salary, actual market purchases have been approx £50k in that time or around £7k pa, no on market purchases have been made by the CFO since the Lanstead deal BTW.
Just some views for discussion.
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