RE: PI''s cashcow for the BoD22 Sep 2024 00:39
Acquiring Galactica/Pegasus instead of focusing on further exploration or operational needs is questionable, especially when exploration could potentially lead to the discovery of additional valuable resources. By redirecting resources towards acquisition, the company may have missed an opportunity to boost its core/exploration operations, which could have provided more immediate value to shareholders.
Moreover, acquisitions bring additional risks, especially if the newly acquired GP does not perform as expected. Exploration, though uncertain, can often yield long-term benefits, and it is surprising that the last placing funds weren't FULLY allocated to that area.
It raises questions about the company’s overall readiness to transition into production mode in Africa. Decreasing exploration may signal resource constraints, rather than a well-thought-out shift.
Additionally, simply applying for a mining license and creating a feasibility study doesn’t guarantee successful commercialization. These steps are often taken to create smoke and mirrors of progress without necessarily following through on meaningful production. Without clear production timelines or a detailed business model, these actions could be seen as surface-level moves to appease investors without solid backing...
Your statement claims that there is “no intent of short changing investors,” yet the decisions made so far – shifting from exploration, acquiring GP instead of developing existing ones, and transitioning into acquiring GP could be seen as prioritizing short-term optics over long-term value. This might be perceived as a lack of focus, which undermines trust in the company's ability to deliver meaningful returns.
If the company truly wants to enhance investor value, shouldn't it prioritize cost-effective African operations and targeted exploration rather than speculative acquisitions that strain financial resources?
Exploration has not fully tapped the resource potential. This rush without sufficient due diligence into the feasibility could result in operational setbacks or underperformance in the commercial phase.
Timing is crucial, and if the feasibility study or license application fails to translate into successful production, it could lead to further dilution of shareholder value and even increase financial liabilities.
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