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10:13
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Originally posted by w27
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I think it is about time that we considered what are the fundamental responsibilities of a Board of Directors. The overiding responsibility is to create shareholder wealth. This is a legal responsibility under the Corporations Act. For a mineral exploration company this is a medium to long term responsibility; it cannot normally be achieved in the short term. Directors do not have a responsibility for the day to day share price unless they have a need to raise money on the market in the short term. PIO has no such need so is correctly focused on the medium to longer term development of cash flow and profit. The nearest return is from microcline and possibly lithium micas to a minor degree. I have no doubt that management is clearly focused on sales of current stockpiles of these materials; but they must be more focused on building enduring relationships which will create the climate for lasting sales of the significant resources of these materials that will be revealed in the future. It would be tragic for shareholders if a low quality deal was entered into just to have an announcable and a short jump in the share price with negative long term consequences. This is the time for very careful negotiations and due consideration before committing to anything. These things take time. I do not see any need to panic about the present situation. It is probably inevitable that the price will continue to drift down till we get a positive annopuncement. If you are game, sell now with the intention of buying in at a lower price later. Just don't complain if you are left high and dry.
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"about time that we considered what are the fundamental responsibilities of a Board of Directors. The overiding responsibility is to create shareholder wealth."
