Hi Cornelis,
I replied with some comments to the PR e-mail message,
summarized as follows:
1) Re: Debentures
Their take on it : "Graphically shown...even with the best of intentions management can be, and has been deceived"
My comment: I don't buy it, management is responsible for financing strategy and due diligence. It's their choice.
Now, it would be better to restructure the financing terms to
both parties satisfaction, namely settle the matter out of court.
(Note: if it's too late, simply let the conversion work its way thru)
2) They should concentrate on planning and operations:
--start sales, developing long-term customers, not just acting
as traders
--upgrade material purity
--improve internal controls and reporting of data (I couldnt believe what Scott said in the IR release, that they are awaiting
data from Zambia to establish viability of that project. This is
what a feasibility study is for, also they should be updated
constantly about costs etc. When I ran a small co. we kept a running daily tally on spreadsheets of expenses, cost of goods sold, sales etc and
could basically tell at any moment exactly where we stood. Also
we did monthly statements including balance sheet, income statement
and cash flow. So what are they awaiting from Zambia? They have
already been in operation for a few months from what I understand.)
--improve IR: I gave Scott examples of good PR from other NASDAQ
companies I have in my portfolio.
It's not rocket science.
3) Nonetheless, it's good and in their self-interest to establish
good IR communications. Make it based on facts and sales,
financial statements and not hype, and stock price will naturally improve. Otherwise, with lawsuit etc. its a matter of basic
confidence. |
