Firstly, MF may not have stuck it out because CGM didn't have the money to pay him. He may have been asked to return to SWK. Indeed CGM was existing from hand to mouth, and may not be around today if it had to pay a CFO.
2. I thing a salary of $200k+, whilst high by many standards, is not so by top exec in today's listed cos.
3. Whilst most of the oppies are in the money NOW, it's important to realise they may not have been when his salary package was being negotiated. CGM have only been above 3c a couple of weeks or so and usually negotiations like this takes several weeks or even months, to allow workers to give termination notice etc.
4. It's possible that MF may have been A reason for SP increase. It MAY be that when rumours were spread that MF was going to CGM, his attributes MAY have been reason to give added confidence to CGM's as a growing company.
5. As you say it's important that any investor in CGM remembers that this company is over 50% family owned. That has both positive and negative conotations. The family have more to gain and more to lose, but either way, though having to abide by ASX rules, they have the casting votes on how they run the company. It's even more important than normal to consider management ethics in these cases. I. for one am happy. Remember one reason the family have such a huge investment in CGM is because many investors didn't show confidence in the last rights offering and Mama Swick as co-underwriter was forced to buy extra.
Onshow, the profits you quote, whilst about right are EBITDA. IMO opinion this Qtr, I = $15k, T = $400k and DA = $500k. All very rough. That would leave about $1.3m Net profit for quarter.
Also, not sure if I wrote this here before or in an email, but in the last quarterly CGM state that a couple of DDs that went to PARA state were experiencing difficuties due to rain. Well AVB (drilling in PARA)in a recent report that drilling was now progressing well. Furthermore, in Monday's report AVB state that they are adding a further RC drill in near future. Pretty confident it's one of ours left over from BDR's drilling.
Before latest notice I had Drilling valued at 9c/share and gold at 1c/s. With "significant increase" in drilling and cyanidation of gold tailings to commence "in July". I believe value of 11c for drilling and 2c for gold is more appropriate. This does not include the speculate value of gold which could easily increase by many multiples.
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CGM Price at posting:
5.7¢ Sentiment: LT Buy Disclosure: Held
