Two companies casting aside any semblance of corporate integrity in search of a strategy are rarely able to create a magic pudding for shareholders
Two companies casting aside any semblance of corporate integrity in search of a strategy are rarely able to create a magic pudding for shareholders. Ascot Resources, a $6 million company with $1.2 million in cash recently had been marketing a vision for a multi-project development pipeline in Columbia. Ochre Group Holdings was a budding iron ore miner with no money in the bank. Its directors had been committed and excited about their world-class development asset in the Pilbara. Now, Ochre has sold the Pilbara project to Ascot. Ascot believes the acquisition provides the opportunity to leverage the Company's management and development experience in Western Australia's iron ore industry. But just four weeks ago its expertise was coal. There was never any mention of iron ore. Pity anyone who bought Ascot because producing coal in Columbia seemed a good idea.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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