where's the excitement?, page-6

Stateside, rather than continue with your sarcastic comments about the ‘massive destruction of shareholder wealth’ etc (which frankly don't make any sense given that you are simultaneously advocating a takeover at 35c/share), I respectfully suggest you look at two pages:
1. The ten year graph of Nevsun's share price (http://www.nevsun.com/investors/quotes/)
2. The timeline for the discovery and development of Bisha by Nevsun (http://www.nevsun.com/projects/bisha-main/).

To summarise what these pages show: the Bisha deposit was discovered by Nevsun in 2003, which shortly thereafter led to an all time high share price being recorded in 2004 of $8.21. Nevsun subsequently, have done a great job in getting the project to production, which is an admirable achievement BUT yet the share price is now - 8 years later - at $6.16 (via $0.645 mid GFC). So despite all that hard work, the companies share price - as opposed to it's market cap - has fallen by 25% from it's peak. Another example was Integra mining in WA who had/have a great little deposit but were forced to raise equity at deeply discounted levels during the GFC and who have never retested their exploration period SP highs.

My point here is that there is more than one way to skin a cat, and CHN's management have taken the view that rather than enter into a highly dilutive equity issue (or raise debt funding on unattractive terms), followed by a risky development process (will ENAMCO pay? How will geopolitics play out over the next few years etc?) that it is in the interests of the shareholders to take their profit from the project now.

Anyone holding Nevsun for the last 8 years hasn't really done all that well, despite the excellent progress that has been made in the development of the project. CHN management have determined not to go down this path, maybe Nevsun's management should have done the same thing 8 years ago?

Personally, I’m a bit disappointed with the price on offer AND would have been keen to see CHN proceed to development given that I think that they have a great project but at the end of the day it is ONLY worthwhile if the development can be undertaken on terms that are favourable to the shareholders. Notwithstanding this, I am also very comfortable that management will have driven the best possible bargain under the circumstances – and only they are privy to the details of how the equity raising negotiations were progressing.

Surely it is better to change your plans to adapt to the circumstances at hand, then to proceed to your ultimate detriment?

Finally, regarding the suggestion that management are going down this path to ‘feather their own nest’ – I’m sorry, but what a load of rubbish! Tim Goyder is the largest single shareholder in the company and has far more to lose or gain on the basis of the share price than any pay received from the co. (one could also add that he is also a very rich man – and doesn’t need to work for the money full stop)

I’m in for 275,000 shares in this co and sleep well at night knowing that my investment is well managed and in my interests. I may sell in the future depending on what the future focus of the company takes, but with $100M of cash in the bank - I think CHN will have plenty of opportunities knocking on the door in the coming year.

(this article is worth a read as well: http://www.miningnews.net/storyview.asp?storyid=2493874§ionsource=s27)