Excerpts from:
COMMODITY NEWS AND MINING STOCKS-Friday, Oct 10/08
Noront Resources (NOT: TSX) and Hedge Fund Rosseau Asset Management
My Take: I’m all for unlocking shareholder value but I’m slightly weary of a few of the newly proposed nominees for Noront’s board, namely Patrick F.N. Anderson, Thomas Obradovich and Keith McKay from Aurelian Resources (a stock that I used to own). Now Mr. Anderson may have had the find of this decade with Aurelian’s Fruta Del Norte discovery in Ecuador but he is also likely to have lost quite a bit of confidence in the eyes of ex-Aurelian shareholder’s, many of whom (including me) believe that Mr. Anderson and his board of Directors at Aurelian sold out to Kinross Gold for a lot lot less than what many people, analysts included perceived to have been Aurelian’s true value. The distaste left in investor's mind's can perhaps better be illustarted by pointing to an example. Mr. Anderson recently joined the Board of Directors of a company called Colossus Minerals (CSI: TSX). At the time of his appointment, Colossus traded at approximately $2.40/sh and it closed today at $1.10/sh. I can acknowledge that the credit crisis has probably had a major hand for the precipitous decline in Colossus’ shares but if one looks carefully at a price chart of Colossus Minerals, one will find that ever since the day of the Patrick Anderson announcement the price has been in a steady downtrend – coincidence? Did investors vote with their pocketbooks in the case of Colossus Minerals? I say yes to new slate of Noront directors but no to Patrick F.N. Anderson, Thomas Obradovich and Keith McKay.
Disclosure: I own shares in Noront Resources
Posted by: Arjun Rudra
