There is logic, BAD MANAGMENT and BODIt keeps coming to the same thing, why why why. And what logic applies to a situation where the assets are basically valued at zip, the future nothing much, and the ability to survive seems unlikely looking at todays price. So why? Well I keep saying it, MANAGEMENT and BOD and THEIR RECORD on handling this.
Consider:
The debts, cash managment, and costs. Over the last year, do you think that maybe they should have contemplated the possibility that debt would overwhelm them??? How about unforseen costs? How about doing something months ago to preserve shareholder value? Where did all the cash go?
Over last months what has actually gone on? Ridiculous deals, that end up not being deals. Ever heard of deals where they cancel and there is no consequence? Then how was it a deal to begin with? How about shell deals with insider implications, it appears? Like that one? And how much time, money etc did these cost us? The whole value it appears, BECAUSE they should have done something concrete THEN, imo.
Right now, take ALL the debt, or break it down to the parts. Then ask, why can't they preserve, sell off, or get interim funds? I say the reason fits the logic of the past, and is WHY share price seems so ridiculous. NOBODY it appears to me, wants to lend these guys anything or do business with them, or why have they not completed a deal in MONTHS. What are they doing, and I think they should explain CLEARLY the situation and what has been offered, if anything in the past and currently. And what they have contemplated. There have been NO offers to current shareholders. That is what I see as real.
Take the "Committee" as the latest great example of this group actually doing anything visible, for example. We have seen people come and go, with what effect??? Did you actually see, hear or even sense they got anything done?? Stock has gone straight down basically. In other words, complete failure, in accomplishing the task at hand, which was to preserve investor value, or was there some other purpose? If so, what? You might ask that. What are we left with? Same crew, but less of them, are they not failure ridden folks with respect to the performance of HIgh River. It appears to me, without ANY real explanations or path, that this is the case. So why would anyone invest, lend or probably even deal with them? Unless of course, maybe, this is all orchestrated to place the assets in to the hands of somebody at a very low cost and completely f'ck the current shareholders. I am NOT saying this is the case, but it IS worth consideration, as one of many possible explanations. And many of you ponder this, I know. And why wouldn't you, since it is your company and your money???? What has the current management and BOD done to eliviate any doubts. After all, nothing is clear, be it whether they can survive for a few months, or is it a few days, or is it hours?
So when logic is applied, it is ALL about NO LOGIC, because that is what has been missing here, in my opinion, in the running of this operation.
Ask yourself this: what would an exploration company that held ONLY Prognoz be trading at right now? Probably not less than this, in my opinion. How about the other assets? This is pure ridiculous, incredibly untrusted managment and BOD (at least by me if nobody else) with absolutely NO CREDIBILITY IN MY OPINION. And therein is the LOGIC and why we have arrived at this failure.IMO IT REALLY is the case, maybe not so simple, but basically it rests with the performance over the last year, as I see it, brought to us by these folks, as changes have been largely cosmetic, in my opinion.
Right now, have they cut costs? Have they done anything? The Russian currency looks to decline (costs will go down, as also the oil price is down of course) the metal prices obviously down as well. But they should be able to produce at a profit. Why? Look back and REMEMBER, that gold was BELOW this price when all the best laid plans were made. Get it? This should have been profitable if gold was at this price. Do not believe it, just look at any chart and compare to when this operation was being put together.
No, this is failure to manage on a GRAND scale. Failure to instill ANY investor confidence in the future, which of course then spills into ability to raise funds or do deals at reasonable prices as well. That is what we have here, a grand mess. And the blame, it does rest with CURRENT MANAGEMENT IN MY OPINION. The BOD, they appear to have failed on even a grander scale, in overseeing all of this, and doing anything to fend it off.IMO
Want logic: phone them, the BOD, or Management and see what explanations you get, if only from investor relations, which is probably as far as you will get. Your logic might then tell you something about operation.IMO
Logic: that is the logic. We desperately need these folks to be gone, but it is too late, since the mess probably cannot be addressed by anyone else in a time frame that works, in my opinion. So it is a mess, with a slim possibility of much good happening for current investors. Consider this one little fact: Sprott invested here at much higher prices. Their logic, I take it, was the value moving forward. Currently they do not appear to be willing to invest at .04 to .05 unless they are buying in here, which seems doubtful. So what changed with respect to the future, wherein they would buy at huge multiples of this price? Outlook for gold, management, ability to survive, etc. Well they are supposedly long term investors, so what do you think are the reasons? After all, by most standards this would have to be the buy of the century, if not for one little thing, you need people running it that can manage the operation, and funded to make it work ongoing, and through the periods of marginal profitability. We do NOT have that here, in my opinion.