Ojay if I have to seriously state my credentials to you it’s probably time to give up buddy.
I would suggest both you guys read a little story called Oyu Tolgoi. Owned and managed by a guy called Robert Friendland at the time exploration was ongoing in the South Gobi. It was Roberts geo’s along with others that found and located Oyu Tolgoi. It was however Robert and his ability to get business done that created the success of Oyu Tolgoi as it is today,
What Matad needs is the next Robert Friedland who is one of the sharpest business people around and not geo’s as you guys cling too to take the business forward.
I have a good grasp of both the English and Mongolian language.
You appear an aggressive little chap that has a singular view.
Geo’s have value as I have had several work for me. However they add little value at Board room level. Unfortunately your views around a continued approach to a geotechnical conversation will not take this stock forward.
I think both you guys have valid subjective views.
Geotechnical front end work attached to good studies, value engineering, through detailed design and into execution are critical factors.
Without people that understand how this processes works we will ultimately fail. I believe Matad to the greater extent have done this reasonable well. There have been some issues around stakeholder and community relations but to the greater extent nothing to serious.
However now is the time to take the story forward and that means taking ownership of the business out of the control of rock crunchers and engineers into the managerial ownership of people who can propel Matad into production raising necessary funds both internationally and domestically and driving stakeholder value.
Manro has a valid point that it’s time more focus be applied to stakeholders investments and that means driving Matad forward as a major international oil group. If the current management fail to achieve that this stock will never be worth more than 5p.
Balance is key and at the moment we are still a little way from this position or point in time.
I trust you do understand what STIP and LTIP actually are having worked for major corporates ??
LTIP is generally stock related, which normally in turn is related to a companies financial performance. Poor performance relating to a groups financial performance general means you get nothing. I did not see a gleaming financial year by any stretch of the imagination delivered by Matad.
STIP related performance related to deliverables such as executing three wells, no LTI’s, etc I agree are performance related and should be paid.
However the view LTIP related aspects should be paid I believe is a poor judgement call especially as its LTH’s that continue to wait and believe in Matad, with little or no return.
This seems more like a retention bonus which I believe is completely unwarranted.
As a LTH I also agree with the majority of your views and opinions.
You talk sense, and I can clearly see you understand how this process should play out. I sense your frustration and I agree with you the company have made several mistakes, and on occasions put themselves behind the curve when they should of taken a different route in terms of executing the business strategy.
That said we can only hope next year is the year Matad does become a success.
Bonum, you do understand Mongolia has recently been put on a Grey List, MNT continues to slide, there is a significant shortage of USD and other currencies in Mongolia, and regardless of what you think lending from Mongolian banks is a process many have tried and failed with.
There are significant others on an international scale such as EBRD and ADB who especially have a long history with Mongolia and understand investing in country,
Am I am expert, probably not, but in terms of years of working in Mongolia and continuing to work there I can only share the slippery slope associated with an unpredictable banking system that can add significant risk to any project or long term investment.
Also bear in mind any deals with Petro China or others would have to be concluded in USD not MNT. I don’t need to explain to you FX risk.
If you understand Mongolian banks, who the players are, linkages to individuals, government and a country that has been starved of FDI for years you would understand international lenders would make significantly more sense.
There are several other higher value projects in Mongolia currently stuck in terms of local investment from the banks. It would far smarter to get Matad on to the radar of international lenders, or we could be here two to three years before any local funding potentially arrives.
MON1 that is an absolute fact and probably the most important matter facing Matad at present.
I was in Mongolia twice in October and listened to various rumors about the performance of the company of late. I hope the SP does at least stabilize to provide a foundation for better longer term returns.
At the moment as an oil exploration company with a find the markets are not exactly turned on to this summers progress !!