It usually isn't good form to trash talk the departure of a rival CEO, especially someone with the stature of Rio Tinto's Sam Walsh, but the rules were not made for people like Cliffs Natural Resources boss Laurenco Goncalves.
According to Goncalves, the impending departure of Walsh, and the recent sacking of BHP's iron ore head, Jimmy Walsh, was due to their strategy to deliberately flood the market with iron ore.
"Mr Wilson was the most vocal Australian on how to intentionally destroy international iron ore prices," a typically understated Goncalves told investors.
"Sam Walsh was told by his board of directors that his fingernails would only support his weight until this coming June," Goncalves said in a riposte to Walsh's comments in December that iron ore minnows like Cliffs were hanging on by their fingernails.
"From that point on, gravity would play its magic and for Mr Walsh, there will be no more 'hanging on by his finger nails' to his job, exactly like I predicted and informed you during our last quarter investors' conference call," said Goncalves, whose own future has not been all that secure.
And how has he outlasted a heavyweight like Walsh? One key initiative was replacing fly-in, fly-out at its West Australian mines with bus-in, bus-out.
"Instead of using very costly chartered airplanes to fly in our employees from their homes in Perth to the mine in Koolyanobbing 250 miles away, we bring them by bus – it's a lot cheaper," said Goncalves. And he has obviously had a change of heart since last year when he said he couldn't wait to get out of that "doomed" and "cursed" place that is the Australian iron ore market.
"But you know what? I'm good keeping the business, it's a great business, we have a great team in Australia," he said.
Gold play
Is Gary Morgan's perennially underperforming gold play, Haoma Resources, about to turn a corner after soaking up most of the pollster's fortune?
Despite announcing in its February half year results that accumulated losses had reached $124 million.
And the fact it needed another $1.5 million cash loan from Morgan for the half year – which presumably adds to the $63 million debt mountain, and accrued interest, it now owes his polling shop, Roy Morgan Research – the share price has tripled over the last three months.
Investors must have been really excited at the news in early February that the first production run at its Bamboo Creek Pilot Plant "has been successful".
Haoma said the revolutionary gold extraction method, which is provided free of charge by another Morgan company, Elazac, had produced a bullion bar with 195 grammes of gold.
On Friday, Haoma went into a trading halt with some exciting news.
"Haoma is expecting to release significant results of test work which are likely to significantly impact the price of its shares," said the company.
The big news is expected to be announced in its March quarter activities report on Monday.
And some good news cannot come soon enough for Morgan, who was temporarily evicted from the Collins St offices that house his various businesses just before Christmas.
Morgan had owned the prestigious Melbourne premises until last year when he sold the offices for $32 million and leased it back from landlords who were soon at loggerheads with their tennant.
We don't need to guess where the cash ended up to do we?
Court fit
Nearly a year after the collapse of BBY, the first collapse by a stock market participant in three decades, the liquidators from KPMG are preparing the public examination of its directors.
Tennis great Ken Rosewall will no doubt know how to prepare for his big moment in the spotlight, but for his son, BBY executive chairman Glenn Rosewall, this is obviously unfamiliar territory.
No need to worry. Glenn is getting some help. CBD is informed he has got himself a life coach, although we would still suggest some legal coaching before he takes the stand and gets grilled on when exactly BBY started trading while insolvent.
Got a tip? ckruger@fairfaxmedia.com.au
