With the downturn in metals prices, junior mining companies have quite rightly changed tack and become parsimonious. Every day we hear of drill programs being cancelled, expenses being cut, concessions on option agreements being handed back etc.Not at Exeter Resources (XRC.to) (XRA), though. Because XRC managed to put $35m in the company coffers due to lucky timing of a placement (March 2008), it thinks it is now awash with cash and can splash shareholders' money on super-duper beano site visits for analysts and suchlike. Of course analysts visits are a part of the game, and when you have something to show the world it's good to get the big brokerages' scribes on your side. However in these budget-conscious times, the Exeter site trip that started today is nothing less than an insult to shareholders who thought they were adding cash for constructive reasons. Chairman Yale Simpson....
.... has spared no expense for the visit that starts today (November 13th), including:1) A six day tour for 9 analysts, several high-rolling investors and up to 16 staff of Exeter (four of whom will accompany the party on the whole trip, including Simpson of course)
2) Accomodation in four luxurious hotels in Chile and Argentina for the whole party (see photos of three of the four underneath).
3) Chartered private plane transport for the whole group, including short-distance and long-distance flights.
4) 4x4 transport to project sites and also overflights of the same projects.
5) A meet-up and talk with Stephen Leary and Keith Barron (both ex-Aurelian and the duo responsible for the FDN discovery) at one of the luxury hotels.
6) Etc etc etc. These guys are pushng the boat out, so expect no expense spared at any given moment.
The tour starts today, with the party huddled together in Chile as we speak. But you don't need to take my word for it as you can view all the details of this luxurious freebie trip right here. Otto has got his grubby little hands on a copy of the official tour itinerary as published by Exeter Resources. Isn't it strange how they forgot to mention all this to their shareholders? In fact, this is the kind of document that companies, especially small junior mining companies like XRC, are keen to keep away from the retail investors' eye so Otto is breaking a rule or two here. But frankly these idiots at XRC need a lesson in basic manners.
So when the XRC 4q08 results come out, ladies and gentlemen of the investment community, take a good look at the filings (I suggest the SEC filings, as Exeter is obliged to give more detail to US authorities) and find out how much money this charabang has cost the company. And wouldn't it be amazing to find a glowing report or two from the analysts on board (including Wendell Zerb of Canaccord, John Hayes of BMO, Duncan Haye of Galena, Andrew Jackson of Global Resource Investors etc etc etc). You scratch my back...........
Moral of the story is that old expression companies use about shareholders: "If they can't take a joke, f*** 'em". But if you're a shareholder of Exeter and feel like complaining about the way they are splashing your money around on this ridiculously expensive site visit, the itinerary publication linked above (or even here, just to make sure) has all the necessary telephone numbers and contacts to the company to make your voice heard.
Hotel Miramonte, Copaipo, Chile
Hotel Los Españoles, Santiago, Chile
The view from Hotel Candil, Bariloche, Argentina