Wednesday 16 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares

Conroy Gold boardroom purge looks a certainty

By Tom Winnifrith | Friday 16 June 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

On June 8th Conroy Gold and Natural Resources (CGNR) said that it had received a demand to hold a GM to clear out most of the existing board and replace them with Paul Johnson and Gervaise Heddle linked to Metal Tiger and large shareholder Patrick O'Sullivan. Since then silence.

The directors who are to be fired if the rebels win are Seamus FitzPatrick (Non-executive Deputy Chairman), James Jones (Finance Director), Dr Sorca Conroy (Non-executive Director), Louis Maguire (Non-executive Director), Michael Power (Non-executive Director) and David Wathen (Non-executive Director). There is no doubt that, many investors feel that, the Conroy board is bloated and too costly. But the coup would see team Metal Tiger in the majority and calling the shots.

Conroy said it was "taking advice." That should not take it very long. It does seem as if the incumbents are playing for time as the maths looks grim for them. The board, largely Professor Richard Conroy, owns 28.16% of the equity but Metal Tiger and O'Sullivan own c35%. And I am aware of at least one more shareholder who is backing the rebels taking their stake to 36%+

That leaves 36% in the hands of thousands of punters who have joined the register as a result of numerous placings often with bucket shops over the years. That is not a crime and indeed it has been the only way junior miners have survived in the bad times, but it does mean that there are thousands of punters with holdings so small they they just will not bother voting. And if they do vote it is far from certain that they will have enough patience to back the incumbents. But my bet is for a very high non vote. And that makes it really very hard indeed to see the incumbents surviving.

That might, perhaps, explain why it is taking so long to "take advice."

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on CGNR


Comments are turned off for this article.

Site by Everywhen