GREY:SWYDF - Post by User
Post by
mjl777on Oct 15, 2014 9:30am
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Post# 23028961
Some Solutions to Turn this Dog Around?
Some Solutions to Turn this Dog Around? Stornoway got beat up yesterday, but so did the market in general. So, do they get a pass on that? I highly doubt it because Stornoway always get's beat up worse than almost everyone else. Makes you wonder, why is that? Perhaps it suggests that the market has no confidence in the company's leadership (i.e. there is much more risk attached to owning this stock than owning the stock of other companies facing similar circumstances).
If the board is looking for solutions to address this issue (I really doubt they are, but here it is anyway), they should seriously consider the following:
1. Replacing Mr. Manson with a credible mine builder with a track record for bringing projects in under budget;
2. Reining in the company's exorbitant G&A expenses;
3. Pricing all future stock options at $1.25 or greater;
4. Eliminating any new stock option grants until the company is cash flow positive;
5. Eliminating any extensions for existing stock options;
6. Reducing the number of directors on the board to no more than 6;
7. Stop playing games with shareholder communications and stop attempting to redefine materiality. Any information related to drilling at Renard, regardless of its state of completeness, is material information and should be released publicly immediately. In case you may have forgotten, Stornoway is a junior exploration company.
8. Lobby the Quebec government to forgive the loan related to the Renard access road.
9. Come out with a strong statement regarding bringing the Renard project in under budget. Having a cost overrun loan facility is nice, but there's really no reason why the project can't be brought in at least 10% under budget in these conditions (low commodity prices, slow construction environment and excess capacity in the Quebec construction industry, poor resource industry conditions). In light of the contingencies and cost escalation already built into the capital budget, achieving this objective should be readily attainable. So,why not do it and communicate it?