How much has chairman Jim Ellerton made from Sefton Resources?

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You will be aware of my concerns about AIM listed Sefton Resources (LSE:SER) shares in which traded at 95p in 2001 and are 1.55p today. The company has yet to comment or issue legal proceedings about my article of Friday which invited it and its chairman Jim Ellerton to explain why successive RNS statements were not lies. This is a company that has raised equity by issuing shares 10 times in the past 3 years. Where does it all go? Have a guess.

© Image copyright miran

In case you missed the article in which I invited Sefton to sue me it is HERE

And please feel free to enter my Sefton Special caption contest to win a “Piss off Argentina” mug HERE

I remind you that Sefton shares were 95p in 2001. They are 1.55p today. So if shareholders have not benefitted from a decade of non delivery and constant dilution so who has?

Sadly the Sefton website only contains the 2011 annual report. I wish it had all its annual reports since listing as that might provide a definitive answer. But 2011 is a good place to start. In the section on directors remuneration I see that Jim ( who was a co-founder of this company back in 1994) trousered:

$418,000 emoluments and compensation ( including fees paid to C&J Resources which is 100% owned by Jim and his better half )
$66,000 in pension contributions
$57,000 share based compensation

And of course there will be employers National Insurance etc payable on top of that. I wonder if Jim has an expenses allowance as well? I bet he does. Overall Jim must have cost the company a good  $600,000 odd in 2011.

But it gets better. If we go to the amounts owed to Sefton ( receivable) we see that in both 2010 and 2011 there is a number there of $283,000 owed by … Jim Ellerton. The accounts say this is for “cash advances.” Er… an advance – which is not paid back for how long?

The company asks us to bear in mind that it still owes C&J Resources $175,000 at 2011 year end and the C&J Pension plan $137,000.  Oh well that is all right then.

So back to Jim’s pay packet. The 2011 annual report does not break down his 2010 compensation but it totalled $476,000. So it is fair to assume that, all in, he probably cost Sefton a good half a million dollars in 2010.

So, since founding Sefton in 1994 how much do you reckon Jim has taken out of the company? I have no idea since Sefton has only one annual report on its website but perhaps it is a question we might ask at the investor evening it is holding on 9th October.

You can register for this event HERE   – I have registered myself and will attend. It starts at 6 PM and if anyone wishes to join me at 4.45 PM beforehand for a pizza at half price at Real Man Pizza Company we can all go along together. Email me on tomat49@gmail.com if you are up for the pizza beforehand.

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Comments

  1. Gondola says:

    Tom,

    An increase from $476,000 to a very lofty $541,000 is staggering to say the least – especially when one considers that the company is capitalised at around a mere £7.5 million. To put this into some sort of context, I know of several shareholders who have complained about the remuneration package afforded to a CEO (broadly similar in magnitude to that of Mr Ellerton) who has delivered on tangible objectives and is at the helm of a company capitalised at just over £100 mln (though until recently this figure was a lot higher). The point is that this kind of package is absurd for a tiny company such as this, especially given the failure to meet, far less exceed, most of the previously published objectives during that period.

    Yours

    Gondola

  2. Freida says:

    Basically, Jim is fucking over investors.

    Back on the LSE board you have people such as ‘sellisforcowards’ defending JEs actions, because they hope they can recover their loses with news on ‘the big one’all being the Dr Ali report…

    Makes you sick because the Ali report will just be another excuse to waste $15m into JEs coffers.

  3. HR Pufnstuf says:

    Jim Ellerton: “Part of the plan is to establish a ‘basket’ of financial instruments to utilise in asset development and acquisitions. Directors are mindful of dilution but believe the placings to date have allowed value to be created. Assembling a basket of financial instruments will provide future funding flexibility and the equity finance facility with Darwin is just one element in this basket.”

    http://www.miningmaven.com/companies/aim-mining/sefton-resources/sefton-resources-q-a-with-chairman-jim-ellerton/

    ‘Basket case’ refers to an entity which has lost the power to function efficiently. The phrase originated in World War I and was applied to quadraplegic soldiers who lost all four limbs whose torsos had to be literally supported by a basket-like structure.

  4. Matt says:

    It doesn’t look like anyone on the LSE board is making up losses etc….. Think that sellisforcowards person bought lower than 2p ish, they all seem to have similar opinions. Used to be a terrible board but seems slightly more chilled.

    And I’m sure everyone is waiting for the big one that’s why everyone is in this share surely.

    As for this JE’s actions has never been know for sure, but its all about the next year, if it doesn’t come off company over in my opinion, last chance for the BOD.

  5. Dan says:

    Tom,

    Though I was not much convinced about your earlier blogs on SER production stats, I do appreciate your time and efforts on this blog. Year-by-year the $pay is gone up, but where are the production figures! cool blog.
    Looking for a Good week ahead
    Keep chilled BoD’s spin with blogs like this. (smiley)
    Dan

  6. Monty says:

    Give it a rest Tom, if I was JE I would sue the arse off you.

  7. Dan

    Still chilled – many thanks

    Monty. I would welcome a day in court vs JE. As part of my disclosure package my first call is:

    Can I see the daily production numbers from California for August and July 2012 ( bopd 97 and 116 respectively) to allow the hury to assess how Jim arrived at his statement that output hit 200 bopd and averaged 170 bopd over limited periods to see whether he misled anyone.

    I reckon the only way this data will see the light of day and that we will also see the documentary evidence which Jim used to justify his oft repeated claim’s that the Ali report would arrive within weeks, is as part of a disclosure package.

    As such I would welcome the opportunity, bring it on Jim.

    Tom

  8. Pankaj Bansal says:

    Dan,

    I have replied you in the article “I invite Sefton Resources to sue me: Please explain why you have not told lies.”

    Regards

    Pankaj

  9. Pankaj Bansal says:

    Tom,

    I have registered for the evening and I am in for a Pizza, will mail you sometime before the evening.

    Thanks

    Pankaj

  10. Susan says:

    Tom

    I’m a long term suffering shareholder in MIN, one of your old favourites. Have you looked at their Directors’ salaries and bonuses? If so, do you not think they are grossly overpaid for the results they have earned for shareholders? I would appreciate a reply when you have time.

  11. Jenny says:

    Tom,
    How much were you paid as a director?

  12. Pankaj

    tomat49@gmail.com – see you then

    Susan – yes I agree. Do think Min directors overpaid

    Jenny – all in the Report & Accounts. I will think you will find that in terms of the cash I took out versus the amount I put in via exercising options ( at real prices) I would have happily traded my net draw over 12 years for 15% of Ellerton’s.

    Best wishes

    Tom

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