It won’t take so long as the U.S. presidential election, however the battle for the hearts and minds of shareholders of Taseko Mines, underway for 2 months, has 8 weeks to operate prior to the final showdown on May 10.
And halfway through, Chicago-based shareholder Raging River Capital – that is leading the charge to have its four director nominees elected, a part of an agenda to alter Taseko’s direction – argues its campaign has an effect.
In an interview Friday, Mark Radzik, managing partner of Raging River, said “you know that you have hit the best spot when you are getting a violent reaction. And we’re simply because,” added Radzik when referring to the volley of releases, some corporate governance changes and amendments to some corporate policies produced by Taseko, a company that represents Raging River’s entry into Canadian proxy battles.
Radzik argues the Taseko response is a part of its plan “to distract from the real issues” which he argues are poor stock price performance (in the last five years the shares have declined by almost 90 percent); and corporate governance.
“Underperformance is often the symptom, not the reason,” said Radzik. “I would posit the cause is insider deals and conflicted directors.”
Earlier he explained “making preferential, related party deals in a difficult macro cycle further destroys shareholder value.” By his calculations, over the past 3 years Taseko has spent $28 million in “investments to related companies and fees.”