Call for inquiry as AMC sinks
The Australian Shareholders' Association has called on the ASIC to initiate an inquiry into Australian Magnesium Corporation. AMC's shares have plunged in the wake of its failed Stanwell smelter project. ASA wants to know when AMC's directors became aware that the smelter's cost over-runs would make it impossible to complete the project. ASA representative Phil Wright said there has been “massive destruction of shareholder value” and a lot of investors have been hurt. Wright said AMC collected the last $195 million of contributions from small shareholders in late January 2003 and it's now clear the directors already knew then of the huge cost over-runs.