Demonology. Part-II: Bram Stocker's DraculaWho thought that in 21st century gold mining co turns into real blood sucking vessel. Yeahh, they looks like Aristocrats, well dressed, seems like well educated. They had a money, title & power, almost everything but not the skill of management. Seduced other skilled employees/whistle blowers to leave company or turn into zombie.
So, how Vampires sucking company's potential + cash? Many ways. Only 3 of them publicly disclosed under encoded information. 1. Borrow own money paying extra 3.2%, 2. Sold 30% equity incredible lower price, 3. BoD member from Chinggis khan bank came & left. But he gained almost 200% from his investment. Later found news about bank's corruption. What's left? Well, trying to remind below findings:
1. Gold spots for sold dores. Comparative result shows that they selling lower than BoM purchasing price. According to their disclosures, they wrote that they selling gold to Trade & Development bank of Mongolian, not to Central bank.
2. Awesome huge Forex losses. Why? Why don't they just chose USD as functional, instead MNT? Kind of Forex trading? Company lost but someone earned a profit from it....
3. Cost control over procurement & purchasing. Almost no internal control works there, i guess. Phase-II initial cost was calculated US$100M but increased dramatically, jumped up to 50%, comes US$150M. Why such cost overruns? Well, because of procurement & purchasing is the one of cash sucking channel. No budget, no plan...how they controlling costs? is certain, it's a heaven.
4. Waste $$$ with no results like drilling programme. Digged deeper at ATO found base metals instead. No rigs moved to UK but $$$ already been spent.
Sucking company's potential in many ways like Vampires.