I think they raise a valid point about remuneration needing to be reasonable in order to attract and maintain good management, I haven't looked at it like that before. However the wages being paid are wayy too high for a company this small and with the industry/commodities cycle where it is. The current remuneration was decided in November 2011 ($460,000 AUD for non-executive directors!!) in a time where gold was going to the moon and from what I've read the drilling results coming from Borborema made the deposit look endless. They could have paid themselves 1,000,000 p.a and no one would have cared. But things are different now.
I remember probably about ~1.5 to ~2 years ago the directors took a voluntary pay cut of ~20% due to falling commodity prices. But it looks like they have just issued themselves a heap of options to make up for it. Its good (or maybe not) too see this information put out there in a detailed manner for shareholders to see. $2.5mil paid out to directors/management in 2014. Seems like a lot for what is being achieved?? Everything seems to be at a standstill at Posse and Borborema (we were waiting on the BFS when I bought in 2 years ago). Drilling at Juruena seems to be the only thing happening and that is at a snails pace.
Obviously we can't blame the slump in IO and gold prices on the directors but the way they have handled the downturn has been quite iffy. Juruena looks like a great acquisition for the price we got it. But having said that, we already knew our dry somethingarather plant for treatment of posse fines wouldn't be feasible with IO price where it was/is so knowing we would be getting bugger all profit from that why did we start a massive drilling pogram at Juruena with obviously not enough funds to complete it??
Will wait and see what tomorrow brings before I go spewing more hate, ha
CAS Price at posting:
21.5¢ Sentiment: Hold Disclosure: Held
