Yes Franzneumann,,,I too have come to the conclusion that management is paramount in order to have a winning investment.
And unfortunately, without a good discussion board like this I find that management is the hardest item to find out about. Management can have great bios, yet if they are not honorable and looking to increase shareholder value, we are lost as investors. I won't mention the name of my example, but I can tell you I am so disgusted with this company I can puke.
Company X was the owner of a great property in one of the best gold producing countries in the world. In addition, Company X had spent millions of dollars over many years drilling and exploring it's Mountain Project. We had some spectacular drill intercepts for gold and had already proved 1.4 million ounces up. After exploring Mountain Project for years, Company X decided to allow a JV partner with more expertise earn 49% for taking over the exploration of Mountain Project.
Once Preliminary Economic Feasibility Study completed, the JV partner would then earn 49% of the project. Sounds great so far. Company X sends out a news releases that JV partner has 5 drills turning and pre-feasibility will be out in March 07.
So after this JV partner fails to fulfil it's obligation in a timely fashion, what does Company X management conclude it should do next. It waits until May before it issues a news release which does not have the study all investors have been waiting over 2 years for.
Instead, Company X decides it will immediately turn over 60% of the project to our new JV partner and also give JV partner 4 years to drill and explore before Preliminary Economic Feasibility Study is due. Management also decided to give JV partner 75% of project instead of original 51% for a bankable feasibility study.
Needless to say share prices have plummeted into a huge 60% loss for me,,,and I got in early.
Oh well,,,,so much for Company X.
I have to tell you, this was a great lesson to me in many ways,,,but like I said earlier,,,,managements integrity is paramount. And NOT has this integrity.
Thank Mr. Nemis and thank you fellow posters for your insight into Noront's management.
