RE: An A to Z (Avima to Zanaga) of mining in C-B ?4 Sep 2019 15:41
Hi tomshare,
My message included
"Yesterday's Africa Intelligence reports that : Avima iron ore to be exported by truck via Kribi before year-end.."
Which is clear acknowledgement of the stated timeline.
But when that sentence is followed by
"With Brazzaville agreeing to the transportation of Avima's iron ore by truck via Cameroon should allow the operator to speed up progress on the project. [...] "
it seems pretty clear that progress HASN'T been on schedule. Especially given that the source document re CML pre-dates 2012....
There also seems to be some confusion re the Share Incentive programme (which for the avoidance of doubt I see as a positive signal) and the spin or interpretation being placed on it elsewhere . Where it is being suggested that the beneficiaries of the Programme have an incentive to push the share price up before October.
I think this interpretation is incorrect/misleading , on two counts :
FIRSTLY, the relevant extract reads : …" will use the Retention Fee due to him in October 2019 to subscribe for new Ordinary Shares in ZIOC at the market price of such shares at the relevant time. The number of the new Ordinary Shares so subscribed WILL BE EQUAL [my bold] to the number of Reference Shares notionally attributed to him for the calendar year 2019." It seems clear that there is no incentive to 'encourage' the s/p upwards, since the beneficiaries get the same number of shares, whatever the price. If anything, I think it would be in their interest to keep the s/price DOWN , if they could , to minimise their tax liability : the higher the s/p, the greater the value of the Retention Fee...and the more tax payable on this part of the beneficiaries' income ...and the more post tax income they have to find/ use to buy the equivalent number of shares...
SECONDLY, it seems bizarre (apart from being disrespectful to the integrity of the beneficiaries) to suggest they might try or be in a position to manipulate the price higher to personal benefit (which I think from the above it wouldn't be), when we're talking about MANAGEMENT, who are with respect less likely (even) to be able to influence the s/p than our well-heeled, well connected / guangxi'd , even more motivated Board of Directors, who have basically recently acknowledged that ZIOC's fate will likely be determined by others.
HTH and ATB
Sign In
Follow the stocks
