EHR 0.00% 0.3¢ earth heat resources ltd

phone call from torey

  1. 1,258 Posts.
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    As far as MD's go, Torey has certainly earned my admiration. It can't be an easy task running a company when you have to babysit nervous shareholders during a volatile period such as we are experiencing now. I was pleasantly surprised to receive a phone call from Torey instead of an email.

    He has reassured me that nobody could possibly be in possession of any information that the market hasn't been advised of already. He cited the company's track record of keeping the market well informed of all the milestones in relation to projects and finance. I've got to say that EHR have always provided the market with more information than they absolutely have to.

    Torey also mentioned that the recent placement holders are "ropable" with the recent share price movement, so I'm guessing that he has had to run some damage control with them too.

    Torey suggested that, although he is not personally aware of the dealings of entities on the market, my suspicions regarding La Jolla are most likely correct. I expressed my disappointment that Mal Lucas-Smith sold his shares to La Jolla and Torey was careful not to mention any specifics of the sale between Lucas-Smith and La Jolla. He did say that the actions of directors in the share market are limited, however, this does not extend to the Company Secretary.

    It is my understanding, based on my conversation with Torey, that there may have been extenuating circumstances in Mal's life (possibly of an urgent personal nature) that lead to La Jolla acquiring a bunch of shares at a discount (Torey did not indicate what that discount might have been). He indicated that there had been strong words at the executive level with Mal, that Mal had "put his foot in it" at the AGM and that Mal had asked for disciplinary action to be taken. Torey did not elaborate any further (I hope that this does not constitute privileged information ... I guess that any communication between a MD and shareholders could be considered public information?).

    Following that phone call, I have no doubt that the sell-down has been largely due to La Jolla (and maybe a few nervous holders). I'm also confident that the market has been apprised of all the relevant information. Also, the company is powering on with the Copahue project, and continuing negotiations on the Fiale project.

    I also have a feeling that some decent news is in the wings that could lead to a re-rate. Torey said 'watch this space'. I think that marma's assessment of 5c-6c in the short term could be quite accurate, however, the mid to long term gains could be much more significant IMHO.
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