RE: Earnings Call Transcript - Who buys CRJ? Reading the CC transcript is nice, if one can read between the lines. Listening it is pretty clear the bumbling style and wishy-washy management that is Neil McMillian. It is clear that management feels pressured by the turn of events. I wonder if the BOD has the guts to pitch out the management team? Probably not.
.
But what is clear is that McMillian drew a firm line in the sand stating he'd get 27,000 to 28,000 ounces poured in the last half of 2012. If he can't hit that target he needs to definitely go. But his answer to the one private investor JH is telling - he may very well "high grade" the mine in order to hit this target and try to convince the market he can get the job done. All they need do is change the mine sequence and go after soley the highest grade stopes - those around 9 pgt - in order to hit the target. ask anyone who knows mining about the wisdom of "high grading" a mine!
.
With the Market Cap around $100MM, it will be interesting to see who makes on offer for CRJ. Clearly $150MM buys the whole lot! The key being that in the hands of a management team that doesn't need to hire outside consultants to tell them what they are doing wrong with production and how to upgrade it - in those hands these assets were worth a whole lot more.
.
But alas, if McMillian hangs on to control here, the massive debt the company will have to take on or the flow through dilution will not help shareholders. So we need a buyout offer in order to unlock the value in the projects CRJ holds.
.
Who will it be?