IMG - Heart of the MatterSPEAKER’S FORUM (apologize lengthy message)
Shareholders, this message is not about macro-economics, it’s about drilling down to the heart of the matter. I’m retired, and I spent my whole career working in the mining industry at the management level. I see a lot of potential and value in IMG. However, as a long time shareholder, (all-in) I’m very frustrated about the company’s poor earnings record over the years and today’s ridiculously low share price, especially in a rising gold price environment! The basic problem is that the financial business model (strong Balance Sheet) vs operational (Profit & Loss) is not working for the shareholders. The inactivity of the President and CEO during his watch, was certainly one of the main causes that contributed to the significant drop in the share price to a low 52 WK CDN $2.69 vs. US $1.85! Does this make sense? The IMG share price performance is unacceptable and could have been avoided! He was twiddling his thumps while IMG was burning down! Admittedly, the IMG low share price was also affected by the big drop in the gold price. Back to the root of the problem, the President and CEO has been navigating around the boardroom since 2007 and been drawing a big fat pay cheque for poor performance on the back of the shareholders! Some people are shameless. Can you believe it? That’s not how it works in the Corporate World. Again, he’s one of the main culprits behind the poor stock performance of the company and it could easily have been avoided. With the excessive cash sitting idle in the bank, he had the opportunity over the past year to show some real leadership by lowering costs, providing growth through an acquisition, installing a share buy-back program or declaring a dividend for the long suffering shareholders, but he chooses to do nothing! Another missed opportunity is the Nelligan Gold Prospect. After several years of positive drill results that have delineated a potentially large ore body, the BOD remains non-committal to move the project forward. I won’t bother to go into the details… If he had taken decisive executive action, this would certainly have unlocked some of the potential IMG value and that would have resulted in a higher share price. I’m anxiously waiting for an announcement regarding the President and CEO Succession. He needs a wake-up call or a jolt to see the writing on the wall. We can’t let him retire on the job! Because he doesn’t deserve it! This time around, we need to recruit outside the organization as we cannot afford to make the same mistake twice. In my professional opinion, I do not believe that the current President and CEO has the desire or fortitude to act or change the course of the organization. He’s comfortable with maintaining the STATUS QUO! He’s long in the tooth and couldn’t care less about the shareholders! His experience and academic approach to management is not amenable for a company like IMG with all its potential value and we can no longer afford it! WE are in dire need of a catalyst to unlock the great value that IMG possesses. Topping my list of catalysts is “Change President and CEO”. We need to blast this chap into the outer orbit because he’s the one controlling the decision-making or lack thereof. Let’s work together, it’s our money their playing with! Shareholders, do not be afraid to express your opinion on this platform, it’s your right. These Managers and Directors have enjoyed a good ride; they’ve been mining our pockets for far too long! Most importantly, do not sell your shares at today’s low prices, you cannot allow the hedge funds to stampede you, demoralize you into making bad (emotional) decision. As I always reiterate, “Be Right and Sit Tight”.
IMG