Yes. This represents a major change especially with the share incentives. I especially notice that the 4,000,000 performance shares that are unvested will be vested upon any change of control. That is a pretty big incentive to get a change in control isn’t it? So does TIO really want out? The company that it would seem was only interested in being a private company now appears to support performance shares? Pure speculation on my behalf but I reckon TIO (and therefore Flinders) might well favour a deal similar to the Red Hill IO JV with Mineral Resources to get an upfront payment and then ongoing royalties and take a back seat.
500,000 shares are worth around $230,000 at current market price. What would they be worth with a viable transport/mining solution? That’s a massive incentive to increase the market cap (and therefore the SP).
But the potential of 4,000,000 performance shares? The mind boggles at the shear opportunity for the MD to make many millions of dollars (plus ongoing dividends)! It appears almost obscene. Almost a sign of desperation?
Currently Mr Market values our 1.5bt of IO at around just 5c a ton. Imagine what the value could become with a viable infrastructure solution or JV deal? Times 5 or 10? Times 20? Any thoughts?
Let’s see how new Flinders announcements are structured for the market and hopefully no more kindergarten like presentations.
FMS Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
(20min delay)