1/100 CDI, page-27

There are a couple of things here to keep an eye on though.

1. The remuneration report vote failed at the last AGM, obviously quite a few funds considered the directors were perhaps getting a little greedy, and a bit ahead of themselves with regard to awards at the moment, given the current exploration status of the project. Let's see who is on the Audit and Remuneration committee shall we, and see if they propose any changes of personnel to that committee.

2. There are approximately 50 million unlisted options between 15c and 35c (average of 21c) still outstanding, which some larger fund holders might not have been too happy about, hence the failed remuneration report vote. The question remains, what will happen to these prior to the redomicile, will the directors cash them in and sell them on market before the redomicile? All the scheme document says is that they'll attempt all reasonable efforts to convert them to an equivalent USD value for holding on the NASDAQ - watch closely what happens here.

3. Consolidation of CDIs post redomicile. Shareholders should ask the directors if they have discussed this, and whether or not it is likely? Another company I owned some years ago that redomiciles to New York had about the same number of ASX shares as PLL prior to their redomicile. However, after completing the move, they wanted to reduce the ratio of ADRs to CDIs, from 1 to 100, down to 1 to 25, reducing the CDI number down from about 1.2 billion shares, to 300 million shares. Theoretically, if you do a 1 for 4 consolidation, the value of the CDI shares should go up 4 times to compensate. In my previous experience, the CDIs took a hit for a while, but parity was eventually returned. Let's see what response the directors provide to this question?

It pays to research, to question, to read and study the financials, and to have an inquisitive mind, especially at the small cap end of the market.

Just a few thoughts for the weekend.

Cheers,
Gw