Step Back and Assess We seem to have three groups of people here:
1. Strong supporters of management who believe that management knows what is best and that management's actions will ultimately benefit shareholders. They call for patience and trust.
2. Conflicted Supporters. They believe management has done a superb job in finding assets like Selinsing and bringing them into production, and hope that Mengapur will be the same. The problem is that the development of Selinsing is not reflected in the share price thus they are resistant to seeing management issue shares in order to fund development. They do not believe management is trying to steal the company, rather they think management is impatient. Management should focus on getting the share price at fair value before issuing shares (common sense). They are fine with the use of some debt, forward sales, or partnership on Mengapur.
3. Conspiracy Theorists. They believe that the projects are good as well, but that management is purposefully trying to enrich friends via private placements and that it must be stopped at all costs. (I would bet this group probably believes in the prospects of Mengapur more than group two).
My thoughts:
Regarding Position 3 - While I think it is possible that mangement is purposefully trying to enrich friends, it would be incredibly risky. Why risk career and jail? In addition, why don't the friends buy on the open market at lower prices? GoldMet paid a high premium, why?
Regarding Position 1 - This is also possible. It is hard for me to adopt this position due to the lack of information provided by the company. Second, the reality of the low share price and management's persistent desire to issue shares conflicts. How can it make sense to issue shares at 1-2 times earnings?
Thus to me I see Position 2 as the most likely truth. The onus is on management to provide information to refute the false positions, and thus prove that Position 1 is true. It should not be that difficult to do. The continued failure to do so just makes Position 2 and 3 more plausible.