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Aldebaran Resources (ALDE.v): The dog ate my homework

On Tuesday June 21st during its webinar presentation that day, Aldebaran Resources (ALDE.v) teased its audience on the recently completed hole #221. It was some 1,487m long (i.e. nearly 1.5km), it was complete, it was in the labs, it went into an interesting spot at the Altar project according to other metrics explained that day. Shareholders responded with pricked-up ears, a cheery, “Okay, fair enough, we’ll look out for that one” and settled in to wait. When the recent strategic financing by South32 was announced, part of the deal was hearing ALDE announce that there wouldn’t be any drill assays published until the placement was closed and shareholders again answered with, “Okay fair enough”, ready to wait some more.

And waited some more.

The S32 financing closed last Friday. It’s now Tuesday August 16th and still nothing from ALDE about the fabled hole #221, which means they’ve managed to string the market along for roughly 200m per week. A great value deal for the ALDE IR department I suppose, but those of us on the outside looking have a different point of view. It’s not as if it’s one-off either, this team of auto-denominated professionals has one of the worst track records possible of delayed and deferred public disclosure, constantly playing its shareholder base with empty promises and throwaway lines and for years on end. How many times can you insult the people paying your salaries and get away with it? Kevin Heather seems intent on finding out.

Disclosure: Long ALDE.

6 Comments

    Long $ALDE here as well

    Reply

    Serious question; how much patience is justified for this sector? All risk and no reward. At least tech is rallying hard after been beaten down. But this sector is awful in every climate.

    Reply

      It’s not the sector, it’s not the rocks, it’s not even the metals they contain. The people running these companies still think it’s 1955. If you fall upon a junior with good management, it’s luck. This sector is wall-to-wall human resource mediocrity with boards led by lawyers and management that will say or do anything to keep them there pesky shareholders off their backs.

      Reply

        But isn’t it the sector if every resource junior is run by bad management and even the few good ones (MAI, RIO2 etc.) get dragged down by the rest and political risk?

        Reply

          It’s never been riskless, the player has to go in with eyes wide open on that score. Your comment resonated with me for the “no reward” part of the equation, as insiders have become extremely greedy these days. Certainly paying themselves far more than they’re worth.

          Reply

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