News out this morning from Pathfinder Minerals confirming the departure of former CEO Nick Trew is resolutely good news on many, many counts.
As shareholders will be aware, it was our own criticism and campaign to remove him from the Board, detailed in full in the tab link HERE, that set in motion the train leading up to the events of today. By any measure the stewardship of Mr Trew this last 7 years has been nothing but disastrous for existing shareholders.
The arrival on the register of a new consortia in mid May that resulted in a change of Board composition and the installation of seasoned mining executive and indeed former Kenmare Resources director Simon Farrell we believe signals loudly the intent of the new Board composition on two counts. Firstly, hopefully the removal of Trew at this point is not a coincidence but a key element in concluding a deal to have the licences returned to Pathfinder given PM SA’s (the current licence holder) clear statement that whilst Trew was on the Board there would be no deal. Secondly, given the current market cap of circa just £3m, this indicates the likely travel of direction for the stock price as we highly doubt that the new Directors are here for the de minimis salaries they are receiving. The rewards to them will be outsized if they can pull off the resolution to the licence issue. If they are successful in this endeavour then shareholders benefit commensurately so. Remember, the company was capped at over £80m back in 2011 – this gives us an idea of the potential value that is up for grabs.
We make the statement that we are now firmly behind the entire new Board and as one of the top 5 shareholders believe that the journey from a de facto shell valuation back towards a real heavy mineral sands mining prospect is just about to get off the starting blocks. With a very tight free float and stakes taken on the register this last 5 months by shrewd mining investors, the window of opportunity to position for a hoped for deal in Mozambique we believe is now firmly closing.
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