RE:RE:RE:RE:RE:RE:Why DM should be looking real good to Anto!Regarding your two issues:
1) "Well financed" / equity raises One can and should only rely on the quarterly and annual reports and MD&A for the numbers. The presentation is promotional, which I don't mind really, and the contents doesn't seem to change much over time (I've also looked at earlier presentations).
At some points in time, the company was financed 'well'.. and the project sure is after the Anto deal. But I agree, the whole process of managing financings has been a very very poor execution of management. I think that's one of the most important reasons for the shaer price decline, on top of fast money leaving (as always tends to happen at this stage) and interest in copper dwindling somewhat over the past years.
This is still a negative cash flow developer and these depend on equity financings.. just like any other company in the sector. Number one CEO job: prudent equity raisings with a longer term horizon. Management has failed really up to this point by taking an agressive long shot instead of thinking of a less positive scenario - all as outlined in my earlier post.
I also agree it can be irritating to read these statements in the presentation. I myself noticed that I took offence in particular from "Stock market has never been able to properly value Tier 1 assets. [..] Only mining industry can properly evaluate tier 1 asset." Funny thing is that I understand the underlying message and I actually agree thinking objectively about it, but I felt a bit pissed off reading it. Just do what you're supposed to do and don't blame anyone else, the market in particular. Get real.
2) Corporate governance / shareholder interests Again some valid concerns. My take is that Duluth should really be doing not much more than provide funding to TMM and making sure dilution is as minimal as possible. For now going forward, I take the view that management seems to be getting the message being more humble by cutting spending in a big way. The PFS should provide the boost.
Regarding management taking care of the shareholder, I think incentives are most important. Whatever Dundas mismanaged, he still holds 3 million shares and close to 1.7 million options. I would be worried on your points if he only held options, but he holds a pretty good set of shares. So I am less worried about management alignment with shareholders than management compentence.
From Sedi.ca:
| Insider Name: | Dundas, Christopher | |
| Insider Relationship: | 4 - Director of Issuer, 5 - Senior Officer of Issuer | |
| Ceased to be Insider: | Not Applicable | |
| | 2008-09-04 | Common Shares | | 2,929,875 | | | |
| | 2006-09-25 | Common Shares | 415535 Alberta Ltd. | 4,225 | | | |
| | 2012-06-29 | Common Shares | Raymond James ITF | 38,821 | | | |
| | 2006-09-25 | Common Shares | Suzanne Dundas | 8,303 | | | |
| | 2007-04-18 | Common Shares Share Purchase Warrants | | 0 | | | |
| | 2013-04-19 | Common Shares Stock Option Plan | | 1,675,000 | | | |