CZN 11.1% 1.0¢ corazon mining limited

In my opinion, the Lynn Lake drill results are unlikely to...

  1. 513 Posts.
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    In my opinion, the Lynn Lake drill results are unlikely to affect the SP unless management's reported  'wide' hits are significantly wide. Only a significant discovery will positively affect the SP. Given that management did not even allude to any significant discovery in their summary of the last Lynn Lake drilling, I'm not expecting any surprises, but would be very happy to be wrong.

    In my opinion, the current SP reflects how little this management has achieved with the tenements they've acquired. Lynn Lake for example, they've had since before the MD Brett Smith started his role in July 2010. Here we are, near 8 years later, millions of dollars spent in exploration and literally not a cent to show for it. 8 years is a long time in any investor's book, and it's time they either developed it or abandoned it, because perpetual exploration is not the name of the game here, ROI is. Management can not keep doing the same thing and expect a different result. Just imagine if they'd taken the millions of dollars spent on exploration and used it to acquire a producing asset, we might have just gotten a ROI by now.

    Then there's TUR, the gold tenement they acquired and then abandoned, causing the SP to fall to 0.003c. Yes, I was a share holder throughout that period, and it was not pleasant, despite it being a great opportunity if you were willing to take a significant risk.

    Today we have Mt Gilmore, a tenement acquired in July 2016 and now almost 2 years later they're doing basic geology 101 trying to figure out where to drill, after having spent millions of dollars over two drilling campaigns around where the previous tenement holder had already drilled, and which they had the data for. No JORC after almost 2 years is embarrassing I think.

    In my opinion, collectively this shows poor management of resources and time. I hold and watch numerous other spec companies, while some have similar management, which is often referred to as a lifestyle management, others demonstrate excellent management, having efficiently progressed tenements in to producing assets. Another measure of management is how much they buy what they're selling; that is the company they work for as an investment. I went through 8 years of ASX announcements (since the MD Brett Smith was appointed) and compiled the following list of current directors buying CZN shares, either on market (OM) or participating in a Share Purchase Plan (SPP):

    Column 1 Column 2 Column 3
    0 02/11/2010 Jonathan Downes OM
    1 24/02/2011 Clive Jones SPP
    2 24/02/2011 Jonathan Downes SPP
    3 07/11/2011 Jonathan Downes OM
    4 08/11/2011 Brett Smith OM
    5 05/12/2011 Jonathan Downes OM
    6 05/12/2011 Brett Smith OM
    7 22/03/2012 Brett Smith OM
    8 07/11/2012 Jonathan Downes OM
    9 06/03/2013 Brett Smith SPP
    10 02/03/2016 Jonathan Downes OM
    11 14/02/2017 Clive Jones OM
    12 14/02/2017 Jonathan Downes OM

    That's not an impressive table in my opinion. Collectively, this management hold very little stock, when the time they've served on the board is taken in to account. I have deliberately excluded Dr. Mark Yumin Qiu, as he represents Hanking, which only recently joined the board (compared to the other board members) and hold just over 11% of the company with an investment of ~$2M. He was not on the board at the time current and past tenements were acquired.

    Make of this what you will, but this management is reaping exactly what they've sown in my opinion. Perpetual exploration is not sustainable, and the market is wise to their shenanigans if you ask me, that's why the SP is once again tanking.
 
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Last trade - 15.44pm 29/03/2024 (20 minute delay) ?
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