JL: My reaction to the AGM was one of disappointment. Not one board member ever talked about what the company would do to enhance shareholder value. For those who don't know, THE primary goal of management of any company is to maximize shareholder value (i.e. maximize the stock price and therefore the value of the company), and all management activities should be directed towards the same. During the Q and A period, the audience also did not to focus on shareholder value, instead directing their questions towards the issue of fire assay results.
As a shareholder, my opinion has always been and will always be that we must maximize shareholder value. The 1998 drilling program did not enhance shareholder value; the fact that the stock price fell during the drilling campaign proves so, though on the plus side, it may have had the effect of generating some industry interest in the company, so raising PP money may possibly be slightly easier than would otherwise be the case. It shouldn't surprise people that the 1998 drilling program didn't enhance shareholder value; developing gold reserves matters not if you have no way of economically recovering the gold reserves. The key to maximizing shareholder value remains finding an economic recovery method. The stock ran up in 1997 on the hope that the recovery method under investigation at that time may possibly work and then fell on the testing results, but what this all demonstrates is that the public places great value on finding a economic recovery method and little value on drilling results in the absence of an economic recovery method.
Will JL be the one that unlocks the secrets of FL? I don't know, but it is the current recovery method under investigation, and we should be supporting efforts to make a determination as to whether it will work or not. If it doesn't work, management should then discard JL and investigate other recovery methods, period.
Regards,
Rand
|
