Cancana's minority shareholders need answers from SentientThese are just a few of my observations of what has taken place since Sentient became partners with Cancana and is JIMHO
TWO YEARS AGO
One has to look back over the past 2 years since Sentient invested in Cancana what reastically has Sentient done for Cancana ?
Prior to Sentient becoming partners with Cancana, Andrew Male the former CEO had worked so so hard to make everything possible with Rio Madeira ........even to the point where stockpiles of Manganese were in place.
Andrew as I understand it was really excited when he was able to make what appeared to be a win/win situation for Sentient and the existing Cancana Management
We all remember the euphoria two years ago with a billion dollar company investing in the huge resource Andrew had found for Cancana.
It is at this point you have to ask why after acquiring the deal did as I see it rightly or wrongly did Sentient not give some recognition to Andrew for making everything possible?
A seat on the BOD of Cancana IMHO should have been the least Andrew should have been offered ...... but it now seems obvious that Sentient/Ferrometals wanted to maximise the benefits almost exclusively moving forward for Sentient based on what has transpired since the acquisition was made.
WHAT HAS TRANSPIRED IN THE TWO YEARS SINCE THE ACQUISITION
A considerable amount of work has taken place to the point that everything is in place to generate millions in Sales and profits in 2016.
But we have to ask why the minority shareholders being put in the position they are now that Sentient controls Cancana ?
Why are Sentient stockpiling and not selling the Manganese that is sitting in a Stockpile? t
Had Sentient been serving the best interests of Cancana's minority shareholders, then surely they should have generated Sales to avoid the loan Sentient appears to have made on its own terms?
In addition the loan itself should have had conditions that at the minimum would give protection to Cancana by making it for a longer term in the event that Sentient chose to make a massive stockpile commencing sales next July.
WHAT SENTIENT NEED TO KNOW AND ANSWER TO
Is that the Minority Shareholders are very disappointed that with such a huge resource is why is the SP 50% of the price it was TWO years ago when the value of the Company must has multiplied several times ?
Sentient as the majority shareholder controls everything that happens within Cancana and one has to ask why indirectly the share price has not increased as normally happens when a huge resource is discovered?
The fact that everything is being done the way Sentient wants it done has seriously hurt those who made what appeared to be a very sensible investment. Without doubt the SP should have been way above the 28 centt exercise price at the end of October based on the value of the assets . This in itself would have avoided the $2 million loan and the uncertainty it has created.
With no disrespect to the IR why one has to ask was this position created?
THE FUTURE
I believe the CEO of Ferrometals needs to provide detailed answers to the constructive concerns of shareholders who have seen Cancana's interest in BMC decline by the same amount as Sentient's has gained.
It was recently reduced from 40% to 26% ........what will it be next June 30th the the loan becomes due with a massive stockpile and minimal sales such as happened in the last quarter?
I believe these are constructive concerns that deserve a full explanation from the CEO