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http://www.bajamining.com/static/financials/BAJ_Q12012_MDA1.pdf
Well, I kept 5K shares and dumped the rest this morning.
I just don't know what to think right now. My head is spinning, but probably because I also own TCM and ARG, and all are tanking, although not quite to the extent of Baja.
I'm quite angry with how it has unfolded:
-Citing concerns of within Baja, Mount Kellet attempts to get two directors on the board.
-A nasty proxy ensues, with baja warning "beware the sheep in wolfs clothing"
-Baja barely wins the vote.
-Shortly thereafter, Baja announces: "Oh, by the way, we seem to be 1/4 of a billion over budget." Obviously, they had no way of knowing that PRIOR to the vote. Must of just happened!!
-Shares tumbe.
-Greenslade says: "oh well, I've done what I can. I'm out."
-Shares tumble. Then tumble some more.
-Mount Kellet gets their guys on the board. Shares continue to tumble.
I know only one thing know- this reeks of fraud to me, and I wouldn't put another stupid penny into this company.
And now if you'll excuse me, I need to go and plan another couple extra years of work!
Not a big deal at a cent and a half, but I'll take the small rise today.
The whole proxy fight turned into one massive waste of time, money, resources, etc etc.
Lord only knows whats next from this company now!
Here's what happened!!
Baja Mining Provides Update For Costs of the Boleo Project; Announces Director Resignations
Vancouver, April 23, 2012 – Baja Mining Corp. (TSX:BAJ - OTCQX: BAJFF) today announced the preliminary results of its current capital cost review of the Company’s 70 percent owned Boleo copper-cobalt-zinc project and three resignations from the Board of Directors.
Capital Cost Review
While the review is not yet complete, Baja has identified a projected cost increase of approximately $246 million after exhausting existing contingency and cost overrun facilities. Financing for the Boleo project was based on a 2010 projected go-forward funding requirement of US$1.143 billion. The projected $246 million cost increase represents a 21.5% increase over the 2010 funding requirement.
The projected cost increase is attributable to a variety of pressures including change of scope, design improvements and price increases in key consumables such as steel and fuel. This current estimate exceeds previous forecasts, which were based in part on cost trend analysis. More robust systems are being implemented to improve forecasts and project controls going forward and the Company will provide further information regarding such controls shortly. Nevertheless, the increase is consistent with increases experienced by other mining development projects.
The Company is reviewing the updated cost projections for accuracy and is exploring the potential of various options to defer or reduce costs. In addition, and in consultation with the lenders for the Boleo project and Baja's strategic partners, Baja is considering the most efficient and non-dilutive options for funding its 70% of the budget shortfall. To date, Baja has been successful in minimizing dilution to existing shareholders by providing a financing package 70% comprised of debt and non-equity contributions and is committed to providing the most effective funding to complete the Boleo project.
Under the Boleo project's lending agreements, the projected cost increase requires Baja and its Korean Partners to fund the shortfall. Baja has initiated discussions with the Boleo project's lenders and Baja's partners to develop an acceptable remedy within the next two months allowing the Boleo project to continue drawing on available loan facilities. Baja is cognizant that raising additional funding from the Boleo project's lenders may subject the project to further risk management strategies as required by its lenders including but not limited to additional cost overrun facilities beyond the $100 million already funded and applied to its projected cost increase.
The Company’s Korean partners continue to support the project and are working with Baja and the project's lenders to develop and execute the funding plan. Baja also reports that development of the Boleo project continues on a schedule which is consistent with production targets. As previously disclosed, copper production at the Boleo project is targeted for the first half of 2013.
Director Resignations
Baja also announces the resignations of Graham Thody, Tom Ogryzlo and Wolf Seidler from the Company’s Board of Directors, temporarily reducing the size of the board to three members, of whom two are independent. The Company is working to appoint new independent nominees to the Board to replace the departing directors as swiftly as possible and will keep shareholders apprised of progress.