Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It's a very good interview. Catherine asked the right questions; and Brad gave the right answers. He's done well to purchase MMA on these terms of deferred payment; and he is
obviously determined to get drilling results quickly; assays will no longer be sent to Peru, but processed in Colombia. After a very grim time, caused by the actions of Newmont and Agnico, we can look forward to a better future.
Hi, Starbright
I think you're being slightly unfair on Portfolio. It's obvious (to me at least) that what he meant was, nothing is to be paid to MMA until Anza goes into production.
Of course, you're right about the costs of further exploration and development; but Rome was not built in a day, and Brad has done well to extricate us from the mess we were in.
Hi, John
Just to say that I agree with the first twelve words of your post (Dr may be right to question para 2, but that's another matter).
Hi, Karl
It wasn't luck, it was skill. He knew what he was doing.
Hi, Karl
Thanks for this. As it happens, I held GGP through that Covid scare. The key point is that the CEO, Gervaise H, bought then (and thereby created the bottom). This is what we need from Brad G.
In my view, the only solution to this problem is a new CEO. He has to begin by uttering ten very simple words: "I will do whatever is necessary to create shareholder value."
The fortunes of GGP turned around not from the discovery of Havieron, but from the moment Gervaise Heddle (a finance man) was appointed CEO. The previous CEO, Callum Baxter ((a geologist), was demoted to exploration manager, a post in which he was a great success.
No-one has doubted Brad's qualities as a geologist; but the fact is most investors have lost confidence in him as a CEO. I don't do the blame game; and what has happened is quite probably not his fault. But Napoleon used to ask before promoting an officer, "is he lucky?" And Brad may be lucky for himself; but he has not been lucky for us. I think he should do the decent thing and resign (but stay with the company as exploration manager).
Hi, Dr
Thanks for the reply.
The problem is not issuing new shares as such; it is doing so at a 25% discount. Other companies (e.g, GMET) are able to do a fund-raise at zero discount, which then leaves the share price unchanged, everyone happy, and the management with money to carry on drilling.
The problem here is that the reputation of the company is so poor, or the tribulations of the company are so great, that the managers can only raise money at an alarming discount. And of course, things are aggravated by their refusal to put their own money in.
"Pens poised." How long can a pen be held for? Days, weeks, months, years or decades?
Anyone who is selling today because of the fund-raise is making a silly mistake, in my view. Other companies have been forced to offer a discount of 10% to 25% (e.g. Orosur last month); we weren't.
A fund-raise at a premium to the existing share price is very unusual, and a tribute to the CEO and the assets of the company.
Hi, Bhargav
Thanks for the reply, particularly the last eight words of para 2, which I agree with.
On the matter of blame, it's difficult. Sometimes one should blame individuals for the decisions they have taken (I have taken some stupid ones myself); but much of the time, they are caught up in "circumstances beyond their control" (Dickens); and such I believe to be the case with our CEO and chairman. They didn't expect the Newmont/Agnico duo to respond to political events in Colombia, plus changing corporate priorities, as they did. And they didn't want to get into a fight with two large companies. I don't blame them for this.
It's good to see some positive comments, and less anger, today.
Adversity is a test of character; those who remain cheerful and good-humoured pass; and those who don't, don't.
Hi, Isleworth
The text is as given in my post of 15.42.
Here's the link.
https://twitter.com/OrosurM/status/1765385844611756054
Thanks for this, Karl
It's important to hold to a middle position between too much hope and too much despair. And as your posts have always tried to do this, I've much appreciated them.
If there's good news about to break, I don't understand why he did the fund-raise three weeks ago. It makes no sense to me.
"Last day of PDAC. Good show as always but very sombre mood for explorers needing finance. Thus vital we get drilling at Pepas asap. Good progress with our partners on the Anza transaction- pens poised."
I now see my reply applies to both.
Hi, Dr
My mistake. "Chicken" should read "Dr."
Hi, Chicken
I note that our two messages contradict each other (though I hadn't read yours, when I wrote mine).
There are two ways of looking at it. (i) Those deep underwater will want to hold, in order to get back to break-even. (ii) Those who have suffered so much, just want to put this nightmare behind them, and buy a better stock.
Best wishes