RE: WH Ireland - "Toral is one of Europe’s most under-appreciated lead-zinc deposits"23 Feb 2023 08:12
Morning CHRI5P I can't agree with everything there. I admit I was naive about the sheer amount of cash that would be required when I invested but nobody could have anticipated the issues in the first SS and subsequent market reaction, SP decimation (quite literally from the definition of decimate) doesn't cover it. The coordinates issue was pretty much meaningless as it was connected to a small area in the NE near the River Sill that could never be mined anyway, still a black mark against the Directors for not removing it in the first place. The problem over ASX regulations meaning we couldn't include the inferred was subsequently overcome by de-listing in Australia but the damage was done and the SP was hit so hard all subsequent raises were conducted at punitive levels when most investors had previously had a reasonable expectation that the SS would progress the SP. I believe the Directors planned to raise big after the SS but the screw up shattered the plan, my mistake not anticipating how this would weigh on us for years. Don't forget that CB was CH at the time and a man of his experience should have known in a heartbeat that our ASX listing gave us a heavier burden of regulation on reporting inferred resources, I can only assume he was CH in title only and not really overseeing everything. Okay the ultimate responsibility falls on the head of the CEO at the time and that was LR. On cost control I think LR did pretty well, as I said the ruinous SP after the SS meant that we had limited ability to raise enough money to keep the wolf from the door but they did manage to wring an awful lot of work out of these relatively small raises. For the record given the mistakes I think the wages were overly generous (though relatively moderate by AIM standards) but the field work as we know consistently delivered which as I said many times over the years kept us in the fight. This has finally been born out with this Denarius deal, admittedly not the slam dunk at the very top of my aspirations but much better than the shafting drearily predicted from certain quarters. So as we stand I agree we look very undervalued, just how undervalued will be determined by how well Denarius deploy their expenditure commitments and what comes of the mysterious enlarged mining district. As you have rightly said attention now turns to D's RI, hopefully we'll see who were the guarantors which I think it's fair to say can be seen as a rubber stamp of approval of Denarius' involvement in Toral.
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