Chief:
In many ways, the Bre-x management was much more sophisticated than Clive Johnson and BGO. Mr. Walsh and company took a worthless piece of property and created the illusion that it was the find of the century. For this and the methods used in the BXM story you have to look at them in amazement on how efficient they were. BGO on the other hand had a world class property and reduced it to the category of a dump site as a result of their inept management. Many times, I have marveled this past year as BGO released news at the most inopportune moment. At first, I thought these guys resembled the gang who could not shoot straight. In retrospect this anachronistic release of information had more to do with managements desire not to promote their company making it a more likely takeover candidate. On the surface this appears to be a pretty flimsy statement, however, with the announcement of BGO giving away the CC to Placer Dome, it is obvious the impetus for much of BGO's strategy was for Clive to maintain control of his company at all costs. This is worst than bad management, it is the thinking of a very egocentric personality who would sell anyone or anything for his own perceived gain.
Had BGO maintained an honest release of information keeping shareholders informed concerning the potential of the various properties they were drilling, the stock would have faired much better. Maybe it would have been taken over and maybe it would not have. Nevertheless, BGO would presently be in a position where they were held in high esteem and shareholders would have had a greater understanding of the market conditions that were undermining the sale of AZS. An improvement in the gold market is inevitable at some point in the future. At that time, many companies would have depleted their reserves producing without the exploration for new finds, the CC would have regained its value. Had an astute company made an offer in the current market for BGO at at bargain price of even 6.00, shareholders would be infinitely better than the current situation which is a No GO I. You cannot even use the Term Refuse to Go II anymore, because they have literally given away the prize. But hell Clive still has his Grand Cherokee with Bema Gold written on the side and that is all he ever wanted.
Ken |
