Hello Phillip
I really don't have any, other than to suggest that you note the names and countries referenced as some of the players in this corruption investigation. That having been said, I doubt if some of the more sophisticated (intelligent) players will do anything so stupid as to leave an obvious trail.
My general point in posting the report Phillip was to caution the thread. Perhaps we should not get too excited about any of our central African assets, regardless of their potential or whether they are in a "report" named country or not.
I believe the report's real significance is in the scope of the smuggling, theft and corruption. These commodities and players are moving and acting through far-reaching and pervasive networks and I would not presume that any continental country is not or will not be involved.
I certainly do not believe the market will make any such distinction. Europe might be prepared to assign value to third world assets, but I do not believe North American and especially Canadian shareholders are quite so risk blind.
As regards the discussion of upside. I believe SUF has the potential and will probably appreciate after PGM production starts in August, but I do not share the enthusiasm of some for a major move over the near term.
Posted upbeat AR quotes aside, the company also indicates that almost all revenues from Messina will go toward debt retirement over the next two to three years.
A year into that time span, deep pockets will probably take a position in anticipation of debt elimination, however, baring another PGM spike or a major Australian (first world) discovery, I don't see the general market piling on board until after the horizon can be seen.
In that respect, so long as payback is as rapid as anticipated, I would prefer SUF to develop and expand Messina through borrowing rather than by giving away a % such as was done with Camafuca, or by diluting our equity with an underwriting, such as is requested in the AR Information Circular.
In that respect, I hope shareholders will vote against management's request to issue dilutive financings through their AGM vote or mailed ballots.
Further, until management has increased our share value, I do not support and would urge shareholders to reject management's requested featherbedding. If management wish to take a salary cut in lieu of share options then I would support that, but not to have their cake and eat it too.
Management should reward shareholders for our investment and patience, then shareholders will support rewarding management's performance. But earn it!
Finally, I note that management is not asking our permission to give away part of Messina in return for third party financing/development!
I hope shareholders will send a clear message of concern about this issue before and at the AGM calling for a vote from shareholders on the matter.
I note on pg. 15 of our Information Circular that management is asking for our comments. In that respect, I urge every shareholder to express his or her opinions and/or concerns accordingly.
inbox@southernera.com or fax 416-359-9141
Regards
Vaughn |
