With rising gold prices papering over precious metals miner management left, right and centre, it’s easy to forget just how pathetically run some of these mining companies truly are. And on that cue, step forward Steve Letwin!
Remember Coté Lake, the thing Trelawney explored “in a hurry” and then flogged to IAMGOLD? It’s certainly worth revisiting this letter into Nothern Miner from an experienced third party economic geologist who poured scorn on the project in 2011 with this opinion on the project, including the fabulous line, “…history has shown repeatedly that hurrying results to meet the expectations of those who may have little interest in oversight and due diligence is a perilous path.” But Steve Letwin knew better, didn’t listen and in 2012 decided to pay CAD$608m in cash for the thing.
The only substantive news we’ve had about Coté since then was in 2015, when IMG.to announced the news of the U$400m impairment on the project.That’s US Dollars mind, no Loonies. So even if you ignore the opportunity cost, even if you believe IAG hasn’t spent a dime on the project since then, that’s around $1.50/share blown off the value of this company by Steve Letwin’s pisspoor executive decisions.