In brief, Monument Mining goes into the “too hard” pile due to title issues that I don’t understand and a CEO I don’t trust.
- The CEO is Robert Baldock, who used to be the part-time CEO of Yukon-Nevada. I do not have a high opinion of him.
- Like most juniors, Monument is a serial issuer of equity and spends a lot of money on promotion. They have some nice corporate videos… check out their website. Monument actually has positive cash flow and does not necessarily need to raise equity and dilute shareholders. Nonetheless, they do engage in stock promotion and are raising equity.
- They may or may not have title issues with their Selinsing mine. Sim Tze Chui (AKA Jyn Tze Baker) claims that she actually owns the Selinsing mine. Monument is suing her in BC courts for defamation and slander of title. There is some type of legal battle in Malaysia over ownership of Selinsing. I do not know the current situation of that legal action as I don’t read Malay and don’t know how to access their court filings. However, it seems that Sim Tze Chui and Peter Steven Kestel (somebody associated with Monument) had some type of hearing on April 20, 2011 (here is a link to Google’s cache of the page). Google translate states: “Unanimously rejected at a cost Rs 25,000 / – to the Respondent. Deposit to the respondent.” (Kestel is one of the respondents. 25,000 ringit is roughly $8188USD.) Skimming through Monument’s SEDAR filings (not all of them), I wasn’t able to find much information on the title dispute. I am not impressed by the lack of disclosure (see point #1). To be fair, it looks like Monument has the title to the mine… but I am not a lawyer who has read the Malaysian court filings.
- After that, you’d still have to figure out the value of the Selinsing mine… how much ore is left (there may be a lot) and what will the grade be (probably a lot less than 4g/t… one would have to look at the technical reports). After that, you would have to figure out what the value of the new Mengapur project is and whether or not the private placement deal is a good one.
- At one point in time, the related party transactions section discloses that Monument was lending money to Yukon-Nevada. I’m not a fan of the CEO using the company as a piggy bank. (see #1)