RE: Stock Redemption Agreement(s).... You have boiled down my biggest complaint with the PFS and post PFS period. The notion that the company can not explain the change in costs to bulid the mine from $90 million to $477 million.
I'm a corporate accountant by education and experience (30+ years). Whenever a presentation was made to the board of directors, it contained a "swing analysis", something that showed in a schedule what the key drivers were for the change that was being presented. You start with a base number, in this case $90 million. And the key drivers that caused the change (for us $387 million) would be listed out. Inflation/rising costs were always the catch-all when you couldn't identify a piece of the change. Based on the press conference, the swing analysis for the change in start-up costs would look like this:
Previous PFS mine development costs: $90 million
Increase in truck tires: 6 million (assuming 100 tires @ $60,000 price increase)
Inflation: 381 million
Current mine development costs $477 million
Now, I frankly don't expect then to get down to the tire level. But, they should be able to resonably identify the key cost drivers of the increase. How much of the cost increase is attributtable to changes in the design of the process, how much was attributable to the lower grades from the two PFS's, etc.. If major changes were made to the mine design, then Larry should have greased the skids over these last few months, but he didn't.
He should of had these answers ready on the day of the press conference, but he didn't. I have joined the legions of posters on here that this job is too big for Larry and the Board of Directors of AMY. They, the board, should have demanded this analysis at the BOD meeting when the PFS was presented to them but obviously, they did not. The BOD is a collection of Larry's friends. They either can't or won't force the kind of changes that are necessary. As Larry said in one of the press releases on why the PFS was delayed, this is not as simple as a gold mine. He and the BOD can not handle this job.
I am not advocating a shareholder lawsuit. If that happens, we will never get this mine built. But changes throughout the management of this company have to be made. Larry stated in the press conference that all of his investable money is tied up in AMY. If that's true, then he needs to put his pride aside and hire a competent President.
Paul