RE:RE:img frustration-luke555As a longterm shareholder I'm really concerned that this BOD will sell more of our most valuable asset --theore reserves! They use financial metrics/excuses to justify their actions. Justifications such as, the mine was old, spread our risks and protect our assets, build-up the balance sheet etc .....It's incredible that this executive management team would unload some of our most valuable assets in a rising gold market. To cite a few examples:
1. Sold the Sadiola Gold Mine in Mali for a song and dance. I'm certain that the buyers were elated with their acquisition. Justification -old mine -build-up balance sheet!
2. Sold a 35.25% interest in the Cote Gold Project in Ontario. This project will become highly commercial valuable with gold above $1600/oz.Reasoning -spread the risk.
3. Sold forward 150,000 ozs. dirt cheap in a rising gold market!!!! Rational ---Enhance the balance sheet and protect our assets.
Threre's a central theme running through all these transactions. And this begs the question,"are we a financial operations or a Mining operation?".
Having worked in the mining business all my career, I realized that mining was a risky business. And if you are nor willing to take risks get out of the business. Are you listening BOD!!!!!!
based on my research and observations, this executive management team spends more time developing strategic plans for executive compensation than for the mining operations. Good Lord, just look at the Management Indormation Circular for 2019!! It's a bloody shame where their priorities lie.
On a more positive note, in a previous commentary, I proposed that they sell the African assets to the Chinese because they are aggresively looking to establish themselves in the African jurisdiction. With some of the cash on hand and from the sale of these assets, they should focus their efforts on the Northern Hemisphere. They could develop Monster Lake and the Nelligan property and the South American Assets. They should set objectives to plan for growth and more importantly make lower costs and make an operating profit. It's a simple proposition but I don't think that this BOD has the whereforall to pull it off.
Let's move forward and make the company great again.