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I have been a long time shareholder of High River Gold (HRG). As such, my average price per share is $1.23. HRG's share price was $3.50 just 2 months ago. It has taken a severe hit in the 2 months and has now fallen to $1.37 at close today. This was not suppose to occur. HRG was well on its way to over $5.50 per share by the end of 2008.
In a nutshell, management killed everything. The market was relentless in punishing the company. The market wanted to send a very bloody message (and it did). Shareholders completely revolted. Again, in a nutshell, here is what happened:
1) start up issues at the 2 mines, which management attempting to sweep under the carpet
2) management left shareholders in the dark for long periods of time - no communications about anything, yet shareholders saw their investment dollars disappearing before their own eyes.
3) poor operating performance at existing mines, which also had a level of deception (i.e. they issued guidance then they materially change the guidance only about 2 weeks later, when they knew the situation all along)
4) Though, this one takes the cake though. They have one of the largest and highest grade undeveloped silver projects in the world. They announced that it will be spun out. Get this though, they were not going to give the spun out shares to existing sharesholders. Instead, they announced that it would be spun out to a small Venture company called Roscan. Can you guess what's next? HRG's CEO and Chairman holds relatively significant shares in Roscan, thus enabling them to benefit materially - they were also Directors of Roscan.
Anyway, there was a major revolt by HRG shareholders. Here is what I had written on June 13th about the situation:
"I am not exactly sure what the major institutional shareholders are waiting for. They need to initiate a special meeting of the shareholders to replace the current BOD for not taking appropriate actions. IMO, both the CEO and the Chairman should have already been replaced (for all the obvious reasons). Not only has the BOD not addressed this situation, but they also allowed the very suspect Prognoz deal to reach this stage. Once the newly appointed BOD is in place, they will be able to immediately terminate the CEO (the Chairman would be terminated as part of replacing the current BOD).
As a long time shareholder of High River Gold Mines, I have noticed first hand the complete failure of this management team to sustain shareholder value on a continuous basis (never mind the inabilities to build shareholder value similar to its peers). At the end of the day, that is the bottom line, regardless of all the excuses given by the company."
HRG has an institutional shareholder base of 70% and they also have 9 prominent analysts that covers them. I'm actually surprised that it reached this stage with so much powerful influence in the background.
Anyway, sorry that was so long, but I wanted to provide a decent background. HRG issued this NR after hours today.
"High River Gold Terminates Agreement to Spin-Out Prognoz
17:00 EDT Wednesday, June 25, 2008
TORONTO, ONTARIO--(Marketwire - June 25, 2008) - High River Gold MinesLtd. (TSX:HRG) ("High River", the "Company" or the "Corporation") today announced that, after assessing the views expressed by shareholders of the Corporation opposed to the spin-out of its 50% interest in the Prognoz Silver Project announced on May 28, 2008, the Company has determined to not proceed. High River will re-evaluate its alternatives regarding Prognoz, including a spin-out, with the view of determining an approach that would receive wide support from its shareholders.
As such, by mutual agreement with Roscan Minerals Corporation, the agreement between the parties has been terminated."
It means that HRG's shareholders achieved a partial win. Lot's more to go though, to get back to where the company should be. It's a clear example that shareholders can win sometimes.
With regards to Century, as you can see, it has very similar brutal management to High River Gold Mines. It gives us hope though that shareholders can make a difference.
Let's fight hard folks. We own Century Mining. It is our company. It is our hard earned investment dollars. I just wish that Wega will begin to fight with us (once the AGM is over) instead of squishing us and using their own tactics. We need Wega, we need Scion and we need the new major shareholder (s) that came on board at $.55 (as part of the Sept'07 offering), if the BOD doesn't act before then.
Production, there are individuals and institutions who for one reason or another want PK to remain with CMM. I doubt though that there is a single retail shareholder with half-a-brain who share similar sentiments.
My gut instinct tells me that PK will cling to the Chairman title unless Ambrose or Campoy want the headache. The CEO should be another story. If the Board fails to make at least one change then they should get their azzes kicked.
My feeling, depending on the AGM outcome, is that retail shareholders must continue to send letters and emails to the Century Mining board of directors so they rememeber that they work for us. We can remind them about their accountability, responsibility, and fiduciary duties to shareholders. We should exert pressure on them to start delivering some of the promise. Their email addresses known, and if they change them, we can locate the new ones.
I thank you for your tremendous effort in rallying the shareholders to fight for a great and worthy cause.
2 comments:
I have been a long time shareholder of High River Gold (HRG). As such, my average price per share is $1.23. HRG's share price was $3.50 just 2 months ago. It has taken a severe hit in the 2 months and has now fallen to $1.37 at close today. This was not suppose to occur. HRG was well on its way to over $5.50 per share by the end of 2008.
In a nutshell, management killed everything. The market was relentless in punishing the company. The market wanted to send a very bloody message (and it did). Shareholders completely revolted. Again, in a nutshell, here is what happened:
1) start up issues at the 2 mines, which management attempting to sweep under the carpet
2) management left shareholders in the dark for long periods of time - no communications about anything, yet shareholders saw their investment dollars disappearing before their own eyes.
3) poor operating performance at existing mines, which also had a level of deception (i.e. they issued guidance then they materially change the guidance only about 2 weeks later, when they knew the situation all along)
4) Though, this one takes the cake though. They have one of the largest and highest grade undeveloped silver projects in the world. They announced that it will be spun out. Get this though, they were not going to give the spun out shares to existing sharesholders. Instead, they announced that it would be spun out to a small Venture company called Roscan. Can you guess what's next? HRG's CEO and Chairman holds relatively significant shares in Roscan, thus enabling them to benefit materially - they were also Directors of Roscan.
Anyway, there was a major revolt by HRG shareholders. Here is what I had written on June 13th about the situation:
"I am not exactly sure what the major institutional shareholders are waiting for. They need to initiate a special meeting of the shareholders to replace the current BOD for not taking appropriate actions. IMO, both the CEO and the Chairman should have already been replaced (for all the obvious reasons). Not only has the BOD not addressed this situation, but they also allowed the very suspect Prognoz deal to reach this stage. Once the newly appointed BOD is in place, they will be able to immediately terminate the CEO (the Chairman would be terminated as part of replacing the current BOD).
As a long time shareholder of High River Gold Mines, I have noticed first hand the complete failure of this management team to sustain shareholder value on a continuous basis (never mind the inabilities to build shareholder value similar to its peers). At the end of the day, that is the bottom line, regardless of all the excuses given by the company."
HRG has an institutional shareholder base of 70% and they also have 9 prominent analysts that covers them. I'm actually surprised that it reached this stage with so much powerful influence in the background.
Anyway, sorry that was so long, but I wanted to provide a decent background. HRG issued this NR after hours today.
"High River Gold Terminates Agreement to Spin-Out Prognoz
17:00 EDT Wednesday, June 25, 2008
TORONTO, ONTARIO--(Marketwire - June 25, 2008) - High River Gold MinesLtd. (TSX:HRG) ("High River", the "Company" or the "Corporation") today announced that, after assessing the views expressed by shareholders of the Corporation opposed to the spin-out of its 50% interest in the Prognoz Silver Project announced on May 28, 2008, the Company has determined to not proceed. High River will re-evaluate its alternatives regarding Prognoz, including a spin-out, with the view of determining an approach that would receive wide support from its shareholders.
As such, by mutual agreement with Roscan Minerals Corporation, the agreement between the parties has been terminated."
It means that HRG's shareholders achieved a partial win. Lot's more to go though, to get back to where the company should be. It's a clear example that shareholders can win sometimes.
With regards to Century, as you can see, it has very similar brutal management to High River Gold Mines. It gives us hope though that shareholders can make a difference.
Let's fight hard folks. We own Century Mining. It is our company. It is our hard earned investment dollars. I just wish that Wega will begin to fight with us (once the AGM is over) instead of squishing us and using their own tactics. We need Wega, we need Scion and we need the new major shareholder (s) that came on board at $.55 (as part of the Sept'07 offering), if the BOD doesn't act before then.
Production, there are individuals and institutions who for one reason or another want PK to remain with CMM. I doubt though that there is a single retail shareholder with half-a-brain who share similar sentiments.
My gut instinct tells me that PK will cling to the Chairman title unless Ambrose or Campoy want the headache. The CEO should be another story. If the Board fails to make at least one change then they should get their azzes kicked.
My feeling, depending on the AGM outcome, is that retail shareholders must continue to send letters and emails to the Century Mining board of directors so they rememeber that they work for us. We can remind them about their accountability, responsibility, and fiduciary duties to shareholders. We should exert pressure on them to start delivering some of the promise. Their email addresses known, and if they change them, we can locate the new ones.
I thank you for your tremendous effort in rallying the shareholders to fight for a great and worthy cause.
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