You and I fundamentally disagree on strategy, and I'm not sure I'll be able to change your mind (although I'm happy to try).
The lawsuits = uncertainty. Lots of it, and for a great length of time.
I've looked at the reports & the title documents that have been made available. I've read what MSX has written, and what Mr. Lopehandia has posted here.
About all the certainty I have is this: Mr. Lopehandia has some claims with his name on them.
Where they are... what they're worth... this important information has been obscured by all the bluster.
If Mr. Johnson were any sort of a leader, he would have acted on this long ago and done some geological testing to prove that the claims are worth something, which would support the value of this company.
It's the most direct way to prove or disprove JL's allegations.
So far, MSX has thrown millions of dollars at Mr. Lopehandia, letting him decide the strategy, and allowing lawyers to file a series of lawsuits.
The result: so far, nothing.
Tell me. If Ms. Salinas were to be successful in her bid to "have a resource protection declared", what would be the financial upside for MSX?
When Barrick is fined for environmental violations, does that money go to MSX, or to the government of Chile?
So far, JL has maintained that the ABX site is in a different location than his claims, but that the Tesoros concessions are improperly included in some of ABX's filings. His own expert seems to agree with him, that ABX is preparing a "new Pascua area".
Let's say the courts eventually get around to sorting out the whole mess. They dissect all of the different named claims in the area, making a pile that belong to Barrick, a pile that belong to JL, and a pile that seem to overlap. What then?
So you know what the courts will do with that mess? I don't.
Do you know if the resolution will call for financial penalties to either party, or if they'll just clarify the claims? If there are financial penalties, how do you guess at the size and direction? Do they go to one of the litigants, or to the government? Or to a regulatory agency, if ABX has misstated its claims? Who absorbs the legal costs?
Even according to MSX's own releases "there is no guarantee that Mr. Lopehandia will be successful in his litigations and accordingly, there is no guarantee that the Company will be able to acquire any interest in the Pascua Lama project."
In a court of law, JL could lose. Frankly, with MSX's win/loss record in the courtroom, I wouldn't bet against it.
I know JL's set on a fight in the courts, but that doesn't mean that MSX has to support this as the best course of action. If he has claims in hand, and we can bypass the whole mess, why wouldn't we? If we could spend the same millions we would spend in court, but put it into geological testing to prove JL's claims... isn't that better than the uncertain conclusion in a courtroom, an untold number of years from now?
Look at it this way for a moment: if MSX could prove that the majority of the gold is on JL's claims, wouldn't that checkmate ABX anyway? Why take a risk on the vagaries of courtrooms, politics, and possible corruption, when a few core samples in hand would sort the whole thing out?
I scary question is this: what's holding MSX back? Is JL afraid to have his claims put to the test? Does the uncertainty benefit Brent's personal interests? Would Brent rather spend years collecting pay and benefits while the courts chew on this one than see it resolved once and for all with geological testing?
I wonder what kinds of questions the BOD are hung up on, and if they share my concerns at all.
