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Gold/Mining/Energy : Imperial Metals (IPM.T) -- Ignore unavailable to you. Want to Upgrade?

To: Italian Investor who wrote (639)	9/15/2010 11:15:12 AM
From: refugee investor	Read Replies (1) \| Respond to of 1366

Update on Choada: Chaoda was the largest disappointment, unexpectedly raising new equity for expansion. This is despite giving the firm impression from last year that its strategy was to grow at a moderate pace compared with past history and having a clean balance sheet. Raising debt would have been preferred. The surprise move looks to have been prompted by government concern over increasing vegetable prices (partly due to weather events). This concern has led to top level government meetings on supply and even rumours of a vegetable reserve being established. Management met with local officials to discuss the problem and this seems to have led to the return to a growth strategy. The Chairman is of a generation that responds to official suggestion. Unfortunately this occurred against a background of a peer delaying its annual results on request of the auditor for further clarification. This is another instance of bungled communication with investors and casts doubt over management credibility. The annual results are mid-October where the management will clarify the strategy. Chaoda trades on a price earnings ratio of 5.