After a decade, it’s time to move on
Listed almost 10 years ago at 1 000c, Pallinghurst was supposed to be Brian Gilbertson’s second act in the mining space after having built BHP Billiton* (since renamed to BHP). But as I always warn, second acts are seldom successful and Pallinghurst’s performance illustrates this.
Directors have done very well with massive fees being paid, but with no reward for shareholders, the alignment between directors and shareholders has never existed.
There are now promises that this will be rectified, but I would be sceptical.
There is also big talk of turning the company into an operational mining company by taking control of Gemfields. But by now surely shareholders have lost trust in the directors?
The share remains some 70% off the listing price and while the board continues to promise better things in the future, it has failed to deliver over the past decade. It is never fun when a promising stock absolutely fails to deliver and after a long holding period, investors often resign themselves to its fate. But instead, frustrated shareholders should sell, take the loss and move on. ■