I'd like to first state that everyone is absolutely entitled to vote however they want... they're your shares and ultimately your voting rights.
Personally, after some consideration and objective rationale, I can't see any real positives for my investment by voting against the warrants for the directors. As mentioned before, it doesn't come out of our own pockets and there is an escrow period (which means it'll be in their interest to do all they can to ensure KML is a success).
Yes, it might feel good to send a message to management and express disdain at the current SP .... but it'll be a short lived feeling of satisfaction that doesn't benefit your investment.
It could even likely have a negative impact if the overall vote went 'No" (which i doubt, to be honest).
The arrangement which they've brokered, with all going well and the milestone target payments being met and delivered, is a very good deal.... especially considering the market response from the ASX towards our zinc portfolio. The depth and magnitude of the project clearly had many investors seeing the chances of MCT developing the project on their own as slim to none.
Im happy with what management have achieved here, so long as the IPO is a success and KML move the project/s at a decent pace, to ensure value is added/maintained and MCT receives the extra cash.
With all going well, it'll put the company in a very good cash position for exploration, plus we get some benefit with our equity in KML, should they progress AB closer to development (sincerely hoping they utilise the smaller zinc assets to create cashflow opportunities, rather than dilute to kingdom come).
Now, in all honesty, the company's focus on every other project except for AB, has been almost non-existent. Very little drilling has taken place and Ive been pretty disappointed at how little has actually been done over the past 24 months in those spaces.
This includes the reporting (or lack thereof) of results from actual drilling that HAS taken place.
Im aware that alot of the focus has been on AB, which is fine..... but because of this we've seen a massive depreciation in SP and overall market interest.
On the flip side, I cant say that im not happy accumulating cheaper shares.
Que Sera.
When the IPO is sorted, there is absolutely no excuse for management not to live up to their recent announcement and actually start drilling some of the good land that we hold. Actual aggressive exploration. I'm accumulating at these levels, despite being 6 figures in the red, because of my belief that they will.
I also believe that the upside from here is incredibly lucrative (of course, as with any spec stock, there is risk involved).
From my interactions with MCT management, i can assure you that they're not lazy. They're always looking for projects (although minimal work has been done one what we have) and they put in the hours.
I do think they have perhaps approached expenditure with caution, waiting until they had AB sorted, in an effort to minimise dilution (though draining funds through admin fees and doing CRs with the insinuation of utilising funds for exploration..... with almost nothing to show.... isn't a good look either).
I think it's a case of being one-track minded with good intentions, rather than something sinister. You have to remember that they've been presenting AB around the globe, pushing for something binding.
It isn't as easy as it sounds, given investors have been historically unimpressed or even burned by the zinc market.
Despite the disgusting SP, the end result for AB and our zinc portfolio is shaping up to be a great result.
We can all argue whether or not we believe management deserve the warrants in KML........ but the fact of the matter is that our current investment will have more opportunity to increase in value if management are incentivised (which includes any argument about the ethics/morality of such incentives when compared to performance of a spec stock's SP).
All IMO
Have a great weekend all
Cheyne
MCT Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
(20min delay)