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Ann: Mining Contractor at Granville Appoints Liquidators, page-316

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capedaile

420 Posts.

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11/03/19

10:57

Post #: 37717429
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Originally posted by blister: ↑

To the Chairman of the Board,

We write to you as a collective of Aus Tin Mining shareholders with concerns about recent company performance and the quality of information disclosed to the market. It is our hope that this letter will encourage you to address our concerns directly, either through changes to personnel or processes.

The performance of the company over the past 12-24 months has not been a positive story. Deadlines established for production, development and exploration have been delayed multiple times, across all current projects, including set-backs to major works at Granville, Pembroke, Mt Cobalt and Taronga. Ultimately, faith in the Board and Executive to deliver on its word or effectively communicate to shareholders, has been severely eroded, if not completely doubted.

While there are some concessions that can be made during the development of a mine, it is difficult to accept a company that consistently fails to meet targets and key deliverables. Moreover, these repeated failures and continuous set-backs generate significant costs to the company, and flow on to affect other projects. This, in conjunction with the accumulated debt position (options and convertible note issuances), have left shareholder’s holdings, external to the Board and Executive, diluted and with significantly degraded capital positions.

As for communication, while the Board and Executive state they disclose and update the market at a frequency and to the standard that complies with ASX and ASIC requirements, we respectfully disagree. The nature of most announcements does not address the second order effects of changes to the company’s operations. As a recent, but not isolated example, the liquidation of contractor Jemrok must have had an impact on the productivity at Granville and subsequent production volumes and dates. However, the market announcement advising shareholders of Jemrok’s situation failed to disclose any potential impacts on the project, whether positive or negative. It is inconceivable that the company would not be able to measure, or at least estimate, the impact of these events in order to inform the market. As another example, drilling was completed months ago at Pembroke, yet the company has failed to disclose anything regarding the results or status of the testing. This has left shareholders completely isolated from the company’s knowledge and actions, rendering us unable to make informed decisions regarding our investments.

We respectfully request that the Board address these concerns and begin to take the public side of the company more seriously. Specifically, by updating the market on all projects by end of march with second order considerations outlined, an estimated schedule and a plan for the coming six months. If our concerns are not addressed in the coming days and weeks, we will be forced to exercise our right to call for an EGM. In this EGM we propose to request:
The Board be stood down and the auditor appointed until a suitable replacement is elected
Shares-for-service arrangements be terminated
Propose changes to remuneration packages of the Board and Executive
Portions of profit generation be directed toward the buy-back of shares on issue.
While the Board and Executive may be of the opinion that this exercise is futile, we ask that serious consideration be given to improving performance, addressing delays and providing comprehensive disclosure to the market to ensure further actions are not required.
Sincerely,

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Any acknowledgement of receipt of letter?
ANW Price at posting: 1.4¢ Sentiment: Buy Disclosure: Held
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