ok .. some musings / comments now had a chance to enjoy a Xmas beer and think about this merger thing. thoughts :
menzie a long way away. appreciate there may be tonnes at sufficient grade to travel the distance but question if the smartest thing. rough transport these days is 0.18-0.22 c t km (with fuel on costs) , so 250km could burn up $45 -60 tonne or over half a gram per tonne. I understand the importance of ore processing security so do give it some value over toll treating but does it justify the sunk transport cost? also the merger doc says base load ore at Laverton. is that our alpha or cork tree ore ? I didn't think they where that far advanced to be mined yet? I couldn't see a lot of KWR ore being ready but did a comment about mining proposal being submitted so assume must be close to being ready to mine.
process plant. nothing is mentioned how and who is going to pay to refurbish the plant and get it working other then paying bill $$$ to do what he was supposed to be doing doing last two years at least ? obviously smacks of golden handshake along with all the free options at recent agm. I think this is a disgrace. how can you perform badly but still get a massive golden handshake at shareholder expense...
which leads me to new managing director performance shares. 80m of shares ?? at least 50m of these (tranche 1-4) are just to turn up and do your job over the next few years? I suppose given previous management hasn't got the plant going , this might be considered "performance " I suppose. but with $250 base , shareholders need to note we are handing out a some significant $$$ here. also how much experience does he have running a mine, processing ore and or exploring. top notch mining guys get paid a lot but least they have experience..
btw the change of control clause bugs me. if your under performing and taken over why should your performance vest ??? either you have achieved the hurdle or haven't .
why KWR. ? I still don't get this. as said in previous post , there are a number of companies and ore bodies closer that make more strategic sense to merge. what's with the exclusivity clauses they say the parties have agreed too. does that mean we can't even consider a superior proposal. how do we receive a superior proposal if exclusive ? (im probably missing something here as assume some legal postion )
summary. I'm 50/50. something is better then nothing. we weren't going anywhere anyways .. detest the directors (incoming and outgoing) lining of their own pockets , KWR doenst make a lot of sense given distance but if they have the high grade ore , might work. six directors (combined) with limited mining experience worries me. I think this is a deal that works for only a certain subset and the directors unfortunately.
*** opinion only.. beer drinking thoughts .. do your own investigations .
(20min delay)