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So a capital raise but unsure how much to pay for part of Alford East project. Plus that is one large amount of warrants to be awarded to the directors!
>Plus that is one large amount of warrants
"The proposed warrants have an exercise price of 1.3 pence and may be exercised at any time from the issue date through to 4 years following the issue date."
With an exercise price of 1.3p though, seems very reasonable?
My only thought on that RNS is....Just get the results shareholders deserve
Not when you compare it to the size of their respective physical shares held. Perhaps I am being critical but a 4 year exercise period to get to a price we nearly touched last year ? I will mark it as ‘underwhelming’ hence part of the reason for the share price dip.
I sold
Out last year at 1.27 and it had defo gone above that on the day !!
Please excuse my ignorance but if they (directors) are issued warrants they still have to pay for the shares. The warrant merely gives the the right to buy shares at that price so ideally the sp goes beyong the strike price to make it more of an incentive to them or have I got that completely wrong? Glad to be corrected etc.
I was a bit unimpressed with the director's shareholding, so see it as a positive that they are 'invested' in getting the share price up. That the exercise is only just above a 30-month high... yeah, understandable you will feel underwhelmed.
Anyone got a summary of what directors existing warrants' exercise levels are? I guess if I looked at an RNS from around this time last year I'd find it in there.
The total price of the 20m warrants at 1.3p is a mere £26k so no big giveaway or future swelling of the company coffers either way.I agree though,I'd rather see RNSs saying the directors are being paid a large part of their salaries in shares rather than cash to demonstrate a real vote of confidence by them
HH
spot7 > Please excuse my ignorance but if they (directors) are issued warrants they still have to pay for the shares.
Yes. Each warrant gives them the right to buy a share for 1.3p any time in the next four years.
Idea being it's worth zero if the share price stays below 1.3p. If the price goes above 1.3p, you'd expect them to exercise the warrants to buy shares at 1.3p (and then infer what you like based on how quickly they sell them)
hoopyhoop >The total price of the 20m warrants at 1.3p is a mere £26k
I reckon you've dropped a decimal place there - unless you're doing some calc and reckon the value of a OTM option at 1.3p is 10% of the strike - I think there's some options on ASX, one might be able to actually see the market value of such an option.
Honestly don't see what the fuss is about.
If if was 200m shares I'd be asking why so cheap.
Roll on Xmas.
So they have forward options at 1.3p/share whilst the current value is over 40% below that (So a minimum of OVER 40% upside from here, that is the only way to look at this) - how can anyone see this as a negative (an incentive yes) but a negative NO.
Directors have to be incentivised to do the work otherwise why should they bother? Lol!
If the new Thor team can uncover something at Ragged Range the share price will run hard imho.
GLTA
At the risk of continuing a topic (the topic of 1.3p) where I sense people are getting tired. Some observations:
- 36m (not 20m) options at 1.3p : https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02434661-2A1330512?access_token=83ff96335c2d45a094df02a206a39ff4
- LSE says 52wk high was 1.4: https://www.londonstockexchange.com/stock/THR/thor-mining-plc/company-page
(That might be the highest LSE order book best offer rather than what was actually traded at though)
And some opinions (mine):
- The number of warrants and their exercise level of 1.3 seems very reasonable, it strikes a good balance between cost and providing incentive.
- Issuing OTM options/warrants to directors is an effective incentive.
- 1.3 is an indication they they have confidence of growing the price above that. These aren't binary options... the value is linear with price above 1.3p - i.e. directors won't be putting their feet up when 1.3001p is reached.
- The diversity of projects, activity, means lots of scope for good-news stories which could attract new buyers and move the price considerably.
- I do like to hear differences of opinion as ultimately price discovery is about the balance of opinions.
snooz - many thanks for clarifying that. I think it's a fair value incentive especially better than just awarding cash from the bottom line. Roll on results in coming weeks / months. I quite like the word production being used by Nicole in the presentation for 2023 but not sure I've heard this before with THOR under previous management. GLA.
The quality of posts on this billboard is excellent. Long may it last.
Best wishes
Where's BGF4 ?
Hi, Prophet
I think you may mean bsg4. Life's not been so easy for him since 2nd September, when Billing jumped (or was he pushed?). But I'm sure there's plenty of mileage left in warning us about future fund raises.
Best wishes
Bore off. You're like a broken record. @BSG4
PC and you don't think, last chance to get under 1p ... ramp, ramp etc, etc. isn't also a broken record?
Aren't we here to make money...invest, trade etc????
or, are we here to drown our sorrows, and share the bitterness and misery?
I know which one I want to be and have a pretty good idea which option BSG4 is going for
gl to all...that even includes you bsg4 believe it or not