RE: 35 million $ Received Thanks Gregetz,
It is certainly great to see the company close this $35 million financing. It puts Majestic in a great position to pay the remaining portion of the mill off and transfer that to their balance sheet (increasing their Book Value while removing the payment from profits of gold from their quarterly income statements). It also puts them in a great position to either deploy that capital to get machinery to get to the high grade zone quicker, or a tonne of other things. It would be great to get a corporate update on their plans - and that is one failure of management.
The other failure of Management - and obviously I have been very critical of them and continue to be - is the lack of ability to attain an appropriate valuation. An asset this size, this close to significant gold production and with a new mill, should have a market cap double or triple what it is. This is the major failure of Management - and as shareholders, the shareprice and market cap are two major items a CEO should be held to account for. This is pure failure at this point.
I would welcome the push to have a CEO that is a Business CEO not a geologist with an ego, wanting to act like a CEO. One that understands the value of shareholders and the fact that he, as CEO, works for the shareholders. One that provides a clear vision, and executes on that vision, reporting successes and failures as they occur. Rod clearly doesn't get that, or that an element of being CEO is to act as the ambassador of the company to the outside world - to create and build relationships with shareholders, to contribute to spreading word of the company and to respect shareholders. All of this contibutes to establishing proper valuation. My hope is NewMargin holds him to a very high standard.
We'll see what happens between now and Sept 6th (AGM), and my voting may be influenced by what occurs between now and the AGM - obviously against a backdrop of the last two years of stagnation. I have no qualms about voting him and others out (and getting others to do the same) based on the share performance and his disregard for shareholders and providing timely updates - if only to make a point.
Til then, enjoy the summer.
B