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All of the parameters for the award may come true, yet Dan could do another Bunker Hill and still get the options.
They should have option but struck OTM. These 1pm options are just cash equivalent. Might as well just make it a cash bonus. Again management and board screwing up.....just do the basics.
Anyone figured out why they were in a rush to get the second ball mill up and running yet?
Still, should be ok if gold holds at this level or higher, they manage to get to decent LOM upgrades from the drilling and they don’t f up Dugbe.
Thanks for the calcs Retired, appreciate your post. learning all the time.
So Dan stands to make 500k and CFO 300k if
130,000 (or more) ounces of gold are poured between 1 January 2020 and 31 December 2020
AISC of US$850 per ounce ; Net cash position by 31 December 2020
I'm okay with this provided AISC is genuine reflection of cost not some mumbo-jumbo crap they concoct to give themselves a bonus.
H1 '19 figures which have been released were 50k oz gold produced and Cost of Sales of $65m ... that's an AISC of $1300 in my books.
So if we get 130k oz and CoS of $110m for 2020 with no debt by y/e then we really ought to be showing Net Profit well above $65m even if gold drops back to $1500 ... that would mean a share price of 40p would still represent a p/e around 3.
At the very least we can all derive a little pleasure if any of those targets are not met.
130,000 (or more) ounces of gold are poured between 1 January 2020 and 31 December 2020
AISC of US$850 per ounce
Net cash position by 31 December 2020
Come 31 March 2021 when these RSU's begin to vest those who remain invested at todays price will have been handsomely rewarded.
Maybe not the best person to post on this as I am sitting on a big loss and some of it could have been avoided. Decisions have been made or not in the past that have gad an adverse effect on the price, and now I'm supposed to be happy that Dan gets a reward. Sorry but no I aint.
It’s not a poor RNS, it was a necessary one as they had to tell the market what shares were vesting to management and which ones lapse. As it stands, Dan Betts stands to make c.£57k from these shares (227k shares at 25p) as of today, as the majority of the potential award lapsed. He’s running (we can debate how well separately) a £100m company and is getting a share award of £56k - while a lot in the context of U.K. average wage, for a CEO of a listed business, operating in something of a challenging environment, now hitting its target, that’s really not very much money. Had a much greater portion of the scheme vested given performance last year, some of the mistakes etc, I would have been irritated, but this does not feel egregious.
Yes Punter it is old news and as such does not need repeating. The PR should be way more proactive and poor RNS,s are a drain on the SP as in the past. As for the 10% remark, they would have got this reward regardless of the output. My point stands, reward when its deserved not if it carries on looking good.
Wholly agree with you Ricky.
Even options starting at current SP would be more acceptable than these ridiculous freebies: that then aligns with shareholder rewards, which should be the raison d'etre for any publicly quoted company.
That said, rationally, this is not significant dilution and does not materially alter the potential here in a POG environment: see the bigger investment picture.
The exploration program with 3 rigs in operation will be a game changer, particularly the conversion of existing resources to reserves that can be included in a mine plan.
Does anyone have a decent contact with the company? Do we know if they are going to do any presentations in the near future?
ngninv - I repeat that the incentive plan is old news. Last quarter was just under 34k oz and if that can be repeated throughout the year then production will be 10% above forecast.
Punter, that's his job and he is well paid for it. When the company is performing above and beyond due to his input then a reward is something to look at, but we are certainly not there yet. If he announced that the mine had produced plus 10% or above then fair enough but I don't see any evidence in that vein.
TBTT, good luck mate. Did have a wobble myself on Friday, but still to much of a loss if I sell at this level. Sad that its come to this.
TBTH - the plan is old news mate. Let's not forget that the mine was built on time and to budget and other than two unforeseeable events (pit wall/shooting) the mine has performed very well. The last quarter produced over 33koz and the move to put in a second ball mill was spot on. So Dan has done plenty right and deserves some reward for that. I am with you over Bunker Hill and there is room for improvement going forward. But the switch from Dugbe to Yanfolia and getting the mine built and fully operational was a great achievement so lets not forget that.
Hi DropInMonkey!
I can't disagree with a word you've written. A disgusting, shameful RNS - it seems that Dan even expects to be handsomely rewarded (at shareholders' expense) simply because the gold price is high.
Thank God I had a moment of clarity and sold out on Friday. Good luck to all who hold here, but can I mention that over at PAF the (honest and very able) CEO and two other directors have been buying shares on the open market?
Hummingbird is cheap. That much is true. But it's cheap because its management is beneath contempt. So I will avoid again.
Well the sp is heading north again so you may see 30p sooner than 20p lol
Well I did say you will be able to pick these up for under 20p. A few more rns like that and that figure will be here in know time.
I agree,options would be fairer. On a plus note I am pleased that three rigs are on site as that shows plenty of intent to get the resource increased significantly.
All these metrics to give the 2 Directors additional free shares worth around £900K at today price whilst Shareholders could quite easily have little (or no) real benefit. Why don't they keep it simple and give them options (10 million or more would be OK with me) at at price of 40p - then we would all be aligned!!
They can write in detail a disgusting option plan with easy to clear hurdles, but can't write about reserve updates, distribution of cash, detail balance sheet issues, reasons behind bunker hill etc. Just shows what management are spending their time on. Dan is a joke, IIs know that, and hence this will be a forever discounted stock. Its all about management. I will bring down my exit price, as I suspect many others will also do.
You've got to be kidding me.
this is exactly the RNS every shareholder is waiting for...and to calm own shareholders a little bit they try to put some good news into the RNS - they will commence drilling 1st of March. That's some news...
This board wqill suck dry this company for years to come. Shareholder value ? Oh yes, Dan & friends are shareholders, and there is lots of value for them...
My thoughts too Ballio. " I'm alright Jack" as we used to say up north. These should only be exercised when the company is debt free and the SH can also see a benefit.
HIPPO is not good. Years and years of director dilution at a huge profit prior to the years of dividend paying that may or may now occur. So we are having our future dividends dialled back. Yet having helped fund the company to operation that means nothing.
I love the note about how the scheme is far as legality is concerned with respect to shareholders. Yes it's legal, but it's far from cool.
Get on with increasing shareholder value now please, by whatever means.
Apologies for the ranty post.
Still a LTH, but every time these are issued it stings.
Ballio