Bye Bye Walter

The Investec finance facility was announced on 26 October 2018 and was promoted as a “Standby Facility” and “Contingency Measure”.

 

We now know that:

 

·        as at 31 October 2018 we only had $321,000 cash on hand.

·        Royalty payments have ceased therefore next known revenue is from $3.5M from completion of North Portia permitting.

·        North Portia permitting (per business scorecard) was due for completion at end of second quarter.  Therefore, HAV management should have known by the 26 October of the reasons for the delay or at least that it was not expected very soon after 26 October 2018.

·        During the quarter, HAV amended its income tax returns for 2013 and 2014, therefore, the ATO would have been chasing payments and HAV did not have any means by which to make any payments.

 

In these circumstances, I question how could the Investec facility be promoted as a “Standby Facility” or “Contingency Measure”, the later being a direct quote from Walter and I assume that announcement would have been approved by Walter as he is CEO and Company Secretary.

 

In my opinion, at best this is mismanagement from our CEO - the former CFO (therefore should under simple cash flow forecasting).   At worst, its deliberately deceiving shareholders.

 

Bye bye Walter, I wish I could say it was nice knowing you.  I hope you have the decency to hand in your resignation.

 

To Chirs Giles and the rest of the board, if Walter doesn’t hand in his resignation, I hope you show enough courage and leadership to ask him to move on (or at least significantly demote him).  In my opinion, if you fail to take any action, you are at risk of being negligent yourselves in your duties as directors.