RE:GREAT PRODUCT BUT BADLY MANAGED Freewil11, I agree with your product evaluation, but am not eligible to determine salaries, which is under the final determination of Director's and approved by a Chairman, but agree that management has been given far to many shares.
As for dilution, I see the problems that developed over the years and listed under Effects as important.
According to the Annual Report 10-K dated June 30, 2012 which is also shown on Canada's SEDAR's EGZ file dated Sept 24, 2012, EGZ had 156.7 million shares outstanding on June 30, 2012, which was approximately 6 months after EGZ discovered graphite trends on Madagascar during late 2011.
EGZ's float of 156.7 million shares was high as the result of earlier development of a Uranium deposit in Canada and Vanadium deposits on Madagascar prior to the Molo Graphite Project.
Effects
First Point: During 2011-2012 EGZ's 156.7 million issued shares were from 3 to greater than 4 times more than the outstanding shares of competitors such as Northern Graphite, Mason Graphite, Zenyatta Ventures and Flinders Resources (Leading Edge Materials Corp.) who has producing mine is in Sweden. They also had about 50% more shares than Focus Graphite. I recall that both Northern Graphite and Flinder's each had highs above $3 per share during 2012. Then the graphite price fell. Also Zenyatta Ventures was promoting its hydrothermal graphite and during 2013, it had a high of $5.
When compared with the above companies, EGZ looked heavily diluted. This effected it's price and resulted in further dilution in the financing her projects.
Second Point: The 2009 Malagasy political crisis of January 26, 2009 and the political opposition led by Antananarivo mayor Andry Rajoelina, which sought to oust President Marc Ravalomamama from the presidency eventually led to violence. After the crisis reached its climax on March 21, 2009 Andry Rajoelina was declared the president of the High Transitional Authority of Madagascar. Five days later Ravalomanana transferred his power to a military council and fled to South Africa. The international community immediately condemned the new leader and his rise as unconstitutional.
Financial support and foreign investments stopped and the country fell into economic crises and Madagascar was viewed as unsafe to invest in.
Third Point: Negative remarks were being made about Madagascar's existing infrastructure, but the Panalpina Group, one of the world’s leading intercontinental air and ocean freight supply chain and logistics companies did not see it that way.
The problems created by the above three points created low share prices for EGZ, which led to further dilution as she raised funds to develop the Molo Project.
A new Malagassy President has been elected since and infrastructure projects have been approved for Southern Madagascar which should help alleviate the problems mentioned in the Second and Third items.
I cannot blame EGZ's management for either the Second and Third Points, and its complicated to totally blame them for the dilution.
I feel that one should consider the above points when evaluating EGZ, be the evaluation be negative or positive. So goes the Resource sector
As an aside, Uranium mining was hurt by the 2011 Japanese Earthquake and Tsunami's effect on the Fukushima Nuclear Power Plant.