Another excellent example Production, and the key to the change in fortunes may have been the addition of a respected former CEO as the Chairman of the Board. I believe the same is possible for CMM, depending on who is named as Chairman.
Glorieux, as long as the market believes that this is Peggy Kent's company and that she has complete control, there are a lot of investors that won't touch this company. I believe that Finiskiy and Scola also know this and that is why they imposed as conditions of their investment a significant curtailment of PK's authority beginning with the reconstitution of the Board and a new Chairman of the Board
On the Lamaque operations side, neither PK nor Andrew McNutt will be in charge - that will be handled by the new Operating Committee. From the Circular:
the Operating Committee will have the sole and exclusive power and authority to supervise the management of the Project until the Project has achieved the Operating Criteria. The Operating Committee will be comprised of four members: two members shall be appointed by the Investor and two members shall be appointed by the incumbent members of the Board.
The Operating Committee will, among other duties, (i) review and recommend changes to the annual budget for the Project and the annual mine plan for the Project, prior to their submission to the Board for its approval, and (ii) supervise the hiring and termination of all senior management personnel for the Project. Until such time as the Project has reached the Operating Criteria, the Investor will have the right to veto the appointment of the senior operating person for the Project.
While I agree that Century presents the best risk-reward situation over any other company in our space, it is because of the current management discount. We should be trading much higher right now as illustrated by Production's examples. If a new CEO were announced tomorrow, the share price would rise dramatically.
Finskiy and Scola are no fools. They have removed much of the operations responsibilities from PK and are planning for her exit by reducing her golden parachute from 2 years severence to 6 months. But she does have some considerable value and they recognize that as well. She is a dealmaker and a shrewd negotiator. The deal with IQ to reduce CMM's debt is a case in point, especially after all of the negative press, but the negative press itself is just another example of how much PK is a liability to the company.
BTW Glorieux, why not become a member and post yourself instead of just commenting on others' posts. For one thing it is much easier to post links that readers can click on rather than cut and paste from your comment. These are the links you posted:
One-more-nail-in-the-coffin-of-the-gold-bears
china-golds-no1-producer-and-consumer-is-taking-control-of-the-market
2 comments:
Next step, we need a report from a brokerage house. Someone to make a recommendation, with a target price. Of course, those who were involved will be doing a report, but they canotissue a report for a period of time. Once that comes out, and we see a target set, watch out!! We will fly!
Carib, you are absolutely right about Finskey & Scola are no fools. Each has an impressive CV, and an excellent track record.
How about considering a new poll for the Blog for CMM's share price, by say Canada Day or by July 4th (just to be even handed). You could give appropriate ranges for the voting.
All the best; bigjohn37
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