1Billion Dollar Question - Part 2The truth has been released from the Pandora box. The current President and CEO (on payroll since 2007) and BOD are at the end of their mining careers and their biological clock is running out. As I alluded to in my previous two postings, you don’t raise a billion dollars over-night. The facts of the matter are this plan was well-thought out and hatched over 10 years ago. Over the past decade, their primary mission has been to develop a financial strategy aimed at building a war-chest of 1Billion dollars. A good portion of these funds were accumulated at the expense of the shareholders. At this stage of their careers, they will say and do anything to cling to power and protect their vested interest and accumulated wealth. The 1Billion dollars sitting idle in the bank vault is their financial security blanket.
The President and CEO and BOD are not about to change their course of action and make any decision that would risk and jeopardize their long-range self-serving plans. They have achieved their financial objective and are quite satisfied to remain neutral and maintain the status quo. They will not spend any funds for such expenditures as dividends or acquiring a mining company to increase the ore production because that would be detrimental and not align with their financial objectives and goals.
Despite all the shenanigans going on at head-office, I firmly believe that IMG has valuable strategic assets and some of the best mining exploration properties in the gold mining sector. Moreover, as a long term shareholder, I’m all in and I’m expecting a big upside in the price of gold over the next few months because of the seasonality factor. “Be patient, Sit tight and BE right!!