Ann: Issue of LTI Options to KMP, page-3

In my opinion, their intention is good, but the execution of that intention is bad or at least could've been better.

+ves:
-> employee options are good when you are looking to bring a resource to mining state. So the link with Jaguar, given how they are confident that it'll go to mining stage, is good
-> ASX 300 barrier is good I reckon @Abacoolloo. While currently the lowest MC in that category is $115mil (Amaysim crashed to half MC last Aug/Sep), generally the cutoff is much higher e.g. BUB which entered last Sep with around $300mil MC. Even if it is only $115mil, that's reasonably good IMO for the performance shares allocated

-ves:
-> if the team is really super confident that this resource is like no other, take a small pay cut (20-30%) and take the options in-lieu of that pay. It might not make much difference to the company's books in terms of $s, but it certainly indicates to the market the confidence of management team. It's easy for DG to receive 75% additional options on his cool $300k paycheck
-> for the first barrier, they've said they decided on the peer companies, yet they've intentionally not published that list, they need to be more transparent
- no clarity on the STI's. You could argue that bonuses are internal to a company and doesn't need to be stated out loud...but if you are making an effort that the company is implementing these incentives, why not give clarity properly!

On balance, I am not too irritated. The intent I believe is not to rob extra shares from the register. I think it's genuine to show the market that they are serious about Jaguar and it has the potential to take the company into ASX300, however the execution could've been way better.

Another thing that I picked up, which did irritated me is the below:

Based on the numbers published in 3G
John Westdorp's salary is 12,749,682* $0.011765*2 = $300k
Roger Fitzhardinge's salary is 11,092,222* $0.011765*2 = $260k
Seriously!!!

I totally understand Roger's salary. He is chief geo, knows Brazil in and out, instrumental in developing large Nickel mines in the past, has been with CTM solidly for 10 years, invested his personal money in at least 2-3 rounds of cap raises, and 2 rounds of options conversions, in top 5 shareholders, passionately shares regular updates through twitter...the list goes on. I really respect Roger.

John joined recently with a fancy title, quoting that he'll be instrumental in negotiations and financing packages, deals etc...then Jambi was shelved...for another 6-9 months I don't think Jaguar's finances come into play. Since Paul left as secretary, ASX releases are either being uploaded late into CTM's website, or missing completely (e.g. 3rd Dec first drilling report missing)...and top20 info is stagnant. Correct me if I am wrong, I cannot understand what value he is adding for $300k salary, except that he is an old mate of CTM

Sorry, rant over! He might be working hard on Jambi's deal and might surprise us...who knows! As the info stands today, I reckon he is grossly overpaid.

As always, all in my personal opinion and just for musings with fellow CTM'ers...have a nice weekend all!