Good one las137, it is always useful to hear the other side of the story. Indeed what CR has said boosts the case of the retail shareholder. He has no case at all. That he borrowed heavily to exercise options at 50 cents was no doubt an act of greed as the SP must have been north of 50 cents at the time. Nobody exercises "out of the money options". They buy shares on the market instead. So CR has now lost 3/5 of the money he borrowed while shareholders have lost more. But he is going to pay himself enough to get his money back.
In fact before I post this let's do a bit of research on CR's options:
On 30/6/2010 Chris puts out a notice that he is exercising 1 mil. options at 50 cents. He does not say when the options expire but we do know that the share price closed at 56.6 cents on a volume of 253883 shares, that day. So by exercising he gets a 12% DISCOUNT.
If we look at the numerous "change of Share Holding" notices we can see that Chris holds the options in various entities including Sonia Jean Reed, Nickel Investments, Louron, Gold Mines Kalgoorlie ( later changed to MF Royalty Pty Ltd). However it always just says unlisted options at 50 cents and fails to give the expiry date.
We have to go allthe way back to p43 of the 2006 financials to see that 1 million 50 cent options were issued 20 July 2005 and expire on 1 July 2010.
THERE WE HAVE IT Chris waited until the day before the options were due to EXPIRE then exercised them because the share price was 12% higher than the option price and you judge whether he did it for the sake of financing the company or for his own personal gain.
"Hoist by his own petard", I would say.
VOTE AGAINST THE REMUNERATION PROPOSALS
Don't forget to go to EGM next Thursday
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