Mr. Rosedale:
I have been a Noront stockholder since prior to Windfall and have read and followed
this play from that point on. I would like you to consider the following.
Your assumption contained in your blog of March 20, 2009 is flawed in many ways. I see it differently. The previous management of Noront, it appears, realized that the rapid growth of the company had created some administrative holes, challenges and problems and prior to the AGM, they commenced to plug those holes as evidenced by firstly employing a very high profile CFO to change the way the company conducted its financial affairs. Secondly, to secure the services of a high profile administrator and corporate counsel to help the organization stickhandle through its growing pains including setting up a variety of corporate governances.
A raft of highly respected field personnel was also retained and coup I would think especially the hiring of Jim Mungle who is recognized as an authority in magmatic sulphide deposits and the appointment of John Harvey as COO and finally bolstering the board of directors with the addition of Paul Parisotto, who I suspect was to be groomed for the CEO position and if not, I suspect that finding a CEO at a time when the markets were on a tear would have been much more difficult than finding a CEO since October 2008. I would think now is the time that it is easier to find talent because of the current state of the economy. Where is he and/or she?
No Mr. Rosedale, the aggressive acquisition of high profile help only bolsters the fact that Richard Nemis was anxious to step aside for new blood. Have you forgotten the fact that he advised that he had written to the major holders including Rosseau, Lassonde, Pinetree asking if they could help in securing a new CEO without a response? This fact does not bode well for your take of Nemis’ intention to step aside!
No Mr. Rosedale, you are wrong in your assessment regarding the man power changes being implemented by the previous management. In fact, my assessment is that they were not given enough time and would have made further changes and additions to the management of Noront.
Your comment re Nemis losing the favour of Bay Street over perhaps hastily announcing of “Eagle 2”. I wonder if it might not have been the field crews; the Chief Geologist and the Chief Operating Officer who would have reported the discovery to Nemis and the management and perhaps they were hasty in their assessment in stating “Another Eagle Has Landed”. I agree however that the buck stops at the top, but I am sure the classification of an Eagle 2 was based on a hasty assessment of the deposit with no miss leading information intended, however, the jury is not in yet on Eagle 2. Could it be economical once the outside and inside infrastructure is completed at McFaulds Lake?
Regarding corporate and financial governance, contracts being signed for twice their value. These statements are pure speculation and irresponsible. Let’s wait for new financials to compare. I would be interested in determining the present total operating costs and how they may have changed including current management salaries and benefits, payments if any made to Rosseau for the proxy battle which battle I hope you have not forgotten was won by the previous management. On the financial side, since Kevin Feeney CFO has left the company, who is minding the store now? How can the financing governance have possibly changed when there is no one there to change it?
I am sorry Mr. Rosedale but I do not buy your analysis of the Noront saga. Warren Irwin at Rosseau saw an opportunity to take control of an up and coming new company. A company with a huge proven resource and with a tremendous upside potential.
Irwin then convinced some of the other big financiers to back their play, Noront had been aggressively changing its image and as I have said, Nemis demonstrated that he was willing and even anxious to step down. What I do believe is that Nemis saved this great little company from the clutches of a greedy hedge fund which would have been a disaster for the shareholders and less we forget, he took the risks and was a driving force on a team that has made a world class chromite discovery and made the richest nickel copper PGM discovery that has been discovered in many years as well as instrumental in acquiring an enviable land position all of which should make headlines for years to come.
I agree with you on the issue of the current board, I think they are moving on and have no wish to rehash old issues and so should you. I will fully support this new board IF they intend to continue to carry on development of the company in the spirit and manner on being handed the reins from the previous board. Although, I must say that all the items set out against Nemis on the dissident proxy still appear to be outstanding. No TSX listing; No new CEO; Share price continuously falling; No CFO overseeing finances; etc.
I am puzzled as to why all this Nemis bashing continues. He has left the company and Noront is now under new management and can go forward in new directions without his, as you keep repeating “negative influence”. I feel that you possibly have a personal dislike of the man and I speak for myself when I say that I have had more than enough of the bad blogs.
Let’s call it a day on negative Nemis blogs and focus on the hopefully positive events taking place up in McFaulds Lake.
Respecfully
goldbug
