RE:The new PresidentWith all respect, is that a joke? We know him well up here in Manisnowba. He is more like a ripper than a successful miner. We were shareholders of Pershimco and let me tell you that he made a fortune at the expense of us.
He was appointed President & CEO of Pershimco in 2008. He acquired a project in Panama for $8.5mn in 2010. During the period 2010-2016, he raised C$73,mn @ avg. C$0.44/sh . In 2016, he sold Pershimco to Orla for C$0.29/Sh after being unable to repay $15 mn to Red Kite. We, the shareholders jumped into the private placements during 2010-2011, lost 33% in that sale. We were even less happy when we realized that the price per share paid by Orla (in shares) was the average price per share of the Bureau´s family and friends. In other words, the shareholders who financed the acquisition and development of the project in Panama (the only valuable asset of Pershimco), including Agnico, were the ones who lost 1/3 of the value of our shares in the deal.
| | Shares | Avg.C$/Sh | C$ |
| 2010FY (Bureau´s F&F) | 54,409,860 | 0.29 | 15,898,433 |
| Private financings | 168,198,439 | 0.44 | 73,255,896 |
| Exercise of warrants | 53,825,386 | 0.40 | 21,449,160 |
| Private financings & exercised warrants | 222,023,825 | 0.43 | 94,705,056 |
| Acquisition of mining properties | 13,085,000 | 0.43 | 5,564,054 |
| Conversion of debentures | 2,857,140 | 0.35 | 999,999 |
| Exercise of stock options | 3,126,250 | 0.33 | 1,041,200 |
| Total Shares Outstnding acquired by Orla | 295,502,075 | 0.40 | 118,208,742 |
| | Shares | Avg.C$/Sh | C$ |
| Private financings & exercised warrants | 222,023,825 | 0.43 | 94,705,056 |
| Acquisiton price paid by Orla (C$84,630,474 / 295,502,075 Shares) | 295,502,075 | 0.29 | 84,630,474 |
| Average Loss of value attributable to private financing shareholders | | -32.86% | |
Alain raised C$73mn + C$15mn in debt= C$98mn. It must be said that he is a good talker, at least making promises that he always fails on them. He knows what he is saying but he does not know about what he is talking. A real successful miner would have developed, constructed and put into production the envisioned heap leach operation in Panama with this amount. Alain was only able to move it to PFS level, not even a bankable FS). It is a shame! He spent C$98mn to get a
PFS level unfinanced project with an unlevered NPV @ 10% dicount rate of $78mn (C$100mn), These numbers do not look like a successful mining guy creating value for his shareholders.
My question then was, if we had not constructed the project, where the cash had gone into?
We realized too late that he had legally been milking the company. During the period 2008-2016 (including the sale of the Company to Orla and AB & RB capital gains), he received total compensation of more than C$5.7mn and Roger Bureau´C$2.23mn. Alain & family were paid a fortune and they destroyed value to shareholders of Pershimco. In your words, we put our money behind a ripper.
| Expressed in C$ | Alain Bureau | Roger Bureau |
| 2008 Total compensation | 491,442 | 515,000 |
| 2009 Total compensation & Mexcan | 45,681 | 198,871 |
| 2010 Total compensation | 64,469 | 21,147 |
| 2011 Total compensation | 279,190 | 108,869 |
| 2012 Total compensation | 311,603 | 314,784 |
| 2013 Total compensation | 444,459 | 291,161 |
| 2014 Total compensation | 460,736 | 151,153 |
| 2015 Total compensation | 378,271 | 37,430 |
| 2016 Total compensation | 412,845 | 23,890 |
| Change of control 2016 | 900,000 | |
| Salary (1st year after acquistion) | 300,000 | |
| Capital gains shares and other instruments (2008-Dec 2016) | 1,618,515 | 573,279 |
| Total compensation and capital gains (C$) | 5,707,211 | 2,235,584 |
Regarding your comment about the majors that he brought, I would say that these majors that he brought to Pershimco are not happy shareholders right now. They are trapped in a project which has not received the permits that Alain promissed would be aproved by 2016 and their shares are close to worthless. I do not see many majors trusting his speech again.
Everyone deserves a second opportunity but with his background, if I were a shareholder of TIM, I would closely follow his compensation and the value created to TIM´s shareholders.