Management are incentevised up to their eyeballs to prove up a resource, so that they make their hurdle payments. This is huge for these guys personally, so they are going to do whatever it takes to make sure they meet their targets.
That ignores their escrowed shares which make up a significant portion of the companies issued capital.
We then add to the fact that they have been spruiking the company over in Hong Kong, and have issued around about 10% of the company to a UK funds management company.
Even further, we see Australian Fund Managers/Into's holding a fairly decent portion of the company as well.
So all in all, between management and the Big End of town, there's a lot of confidence in this company to succeed.
Personally, I don't think that the existing management are in it to see a deposit taken all the way to mine- rather I believe that post receiving their hurdle payment, they would be very happy to have a suitor come and swallow their equity via a take over. That removes the stress of running a company, and makes these guys very, very wealthy. Just look at the deal Linc have done in the neighbourhood to see the potential. I think the insto's are in for the same thing as well.
And again, bringing it back to CAP- we have 20% of some verrrry attractive accerage being managed by a highly incentevised management team in GUF, so I do believe that this will prove to be a significant, potentially once off, value add for CAP. The first step is to see this initial JORC, the timing of which should be made clearer in the upcoming quarterly. From there, I wouldn't be surprised if GUF proactively go spruiking their wares to the Chinese or Indian's
CAP Price at posting:
72.3¢ Sentiment: None Disclosure: Held
