Firstly I’d like to once again thank
@jamesph61 for his continuing commitment in assisting TON in its risk management process, corporate governance and protection and upholding of shareholder rights. It is very rare to have a non holder of TON (and holder of a competing graphite share) so dedicated in giving up so much valuable time of almost his entire comment history towards assisting TON. I thank James for his deep probing questions.
James has just spoken about performance rights today.
Many could interpret/misinterpret it as new performance shares being issued. @Londoner possibly interpreted it that way and to be honest, I too initially thought that it was what James meant.
I’d be happy to be stand corrected and especially by the TON long termers who have been analyzing TON since many years, but to the best of my knowledge this is nothing new but the same old performance rights of last year.
Here is my reasoning –
Here is the 2014 annual report
http://www.tritonmineralsltd.com.au...5/06/Annual-Report-year-end-December-2014.pdf
Some extracts –
On 20 August 2014, the Company held a general meeting at which amongst other matters shareholders approved the adoption of a new constitution, the adoption of a new employee share plan, adoption of a new employee performance rights plan, adoption of a new employee option plan, ratification of prior issues of shares, the issue of shares to directors and performance rights pursuant to the new employee performance rights plan. – Pg 33 of report
1) Pg 34 of report
9 million performance rights to Directors as approved by shareholders at the general meeting held 20 August 2014 pursuant to the Company’s Employee Performance Rights Plan approved at the same meeting; and
6 million performance rights to employees pursuant to the Company’s Employee Performance
Rights Plan approved at the general meeting held 20 August 2014.
Each performance right, upon vesting, entitles the holder to acquire one fully paid ordinary share for
nil consideration. The performance rights will
expire, if unvested, on 20 August 2018. The performance
rights vesting conditions are as follows:
minimum vesting term of 36 months from grant date, being 20 August 2017 (Minimum Vesting
Period);
if an announcement is made to the market by the Company confirming a minimum of an
inferred resource or higher at the Company’s Balama North project of at least 0.5b tonnes of
graphite bearing ore – 6,000,000 performance rights will vest, upon satisfaction of the
Minimum Vesting Period; and
if an announcement is made to the market by the Company confirming that a pre–feasibility
or other feasibility study will be undertaken within the Company’s Balama North project –
6,000,000 director performance rights will vest and 3,000,000 employee performance rights
will vest, upon satisfaction of the Minimum Vesting Period.
This seems to be exactly what is mentioned in today’s announcement
2) Information on directors – Pg 37 and 38
AJ – 3 million performance rights
BB- 3 million
Alf – 3 million
3) Remuneration report – Pg 49
Shows the above 3 amounts of 3 million shares each along with
2 million each for Michael Brady and Paige Exley. I’m not able to reconcile the balance 2 million but I’m sure if I hunt deep enough, I’d find it there.
Michael Brady was granted performance rights when share price was just 13.5 cents on May 2014, and TON did rise a lot since then many times.
Others were granted performance rights when share price was 36.5 cents and once more there were multiple share spikes.
4) Movement in performance rights - Pg 74
9 million issued to directors and 6 million issued to employees and key management personnel
5) Performance rights valuation – Pg 86
Detailed info given again
6) Performance rights holdings of key management personnel – Pg 90
Mentioned how much each person received during the year and holds at end of year
7)Performance rights - Pg 107
6 holders mentioned with 15 million performance rights
8)My comments and conclusion
Seems pretty clear that the 15 million performance rights mentioned today is just coming forth from last year’s announcements.
TON has indeed come a long way since then, with several more milestones ticked, including share price spikes.
Sure I’d like a much higher share price than the current one but criticisms have to be valid and honest. There seemed to be misconception today that these were new performance rights.
To the best of my knowledge based on above explanation, it seems to me that these are not new ones. I'd be happy to be corrected by older TON holders.
Final proof – minimum vesting period itself mentions 20 August 2017
(36 Months from Grant Date) which confirms everything I’ve mentioned above
So yeah...not too sure why something from last year's report is being made into an issue today. It is not like 1 director is getting 15 million shares and not like they are doing anything right now.
Last year's performance rights does seem to have motivated management into ticking an incredible number of boxes, and will obviously continue to..
