I had not planned on posting until Monday but these two situations arose this afternoon and I felt it couldn’t wait.
The moment my readers believe my opinions can be bought is the moment my consulting business ends. Thankfully, 99.9% know there will never be enough compensation for me to say (or not say) something that I would (or wouldn’t) if I wasn’t working for the company. Because of this, I have been let go or resigned in the past from several companies. Such is now the case when it comes to Oromin Explorations.
Back on June 18th, I penned this update. Like I always do, I spoke from my heart (which at times can be found on my sleeve). I received a call from OLE letting me know how dis-satisfied they were about my comments. I told them I stand by them and will not change or take them down. I let it be known then and again this week they can choose to end our working relationship. I assume I don’t have to tell you what they chose.
Unlike normal end of working relationships where I cease commenting on the company, I will continue to comment on OLE for the foreseeable future and/or when I dispose of my shares via a takeover or sale into the market.
While I was relieved to see my thought that OLE was a takeover target going all the way back to December, 2011 was accurate (thanks to all the press releases and filings that have come out since Teranga Gold made their first public comment about an intention to buy the shares of OLE), I’ve grown disenchanted with OLE like a football fan does after the coach went for it on fourth down and failed to get a first down. Not surprisingly, just about every shareholder who I have communicated with feels the same.
In fairness to OLE, a lot of what has happened is mainly due to the junior resource market and metal prices themselves. However, when I “Monday Morning Quarterback”, I can do a fair bit of finger pointing too (and for certain some fingers will have my name on them). Perhaps the most frustrating analogy when I look back was my miscalculation of drilling for ore versus investors. Knowing hindsight is always 20-20, corporate communications and promotion left a lot to be desired when it was all said and done.
Going forward, this is how I’m approaching the OLE situation; there’s a lot of posturing going on but what I felt all along is still the most beneficial outcome for OLE shareholders – a combining of Teranga Gold and OLE. The recent swoon in metals prices makes that even more paramount IMHO.
I’ve spoken to or heard from numerous OLE shareholders and if they’re representative of what the majority of OLE shareholders feel, the management of OLE has very limited support to continue on their own. In fact, unless another party emerges, not one person I heard from given the choice of staying independent or merging with Teranga Gold, would choose staying independent. I’ve to agree.
Stay tuned and rest assured I will honor my commitment as noted earlier.
Please Note – Due to recent events unfolding at Donner Metals, my working relationship with the company shall cease at months-end. I’ve watched Dave Patterson and others work extremely hard but have been caught in a situation that usually never presents itself except in the harshest of market conditions. This horrific junior resource market has been the main reason for this almost overnight dramatic series of events that has brought DON to where it finds itself. Fingers will point at Dave. But if anyone I knew in the decades I’ve been around this industry that will be mostly undeserving of harsh criticism, it’s David. Thankfully, I’ve witnessed his character and believe he’s a man who operates on the belief that so long as he and his Maker know the truth that shall be good enough for him.