Ann: Proposed issue of securities - BML, page-58

Reading through these posts I have given a thumbs up to some fairly negative posts. The word abject failure looms large. But probably to early for this judgement. Hopefully we will have the DFS and even possibly some details on the finance in the next few months. Hopefully all the doom merchants prognostications on the markets are exaggerated and dont materialise.
I want the management to be motivated to perform, but it seems to me a lot is beyond their control. Presumably they are receiving good salaries. Presumably the job is not to arduous. These performance share arrangements are the industry norm but from a shareholders perspective in this instance it seems to me it leaves many with a sour taste, The directors and management can buy shares on market and enjoy a rerating if they perform, particularly in this circumstance. Performence will also enhance their careers. How many workers get these types of bonuses for doing there job. 8 million shares at 20 cents, is $1.6m. If the market cap is $35m that is over 4.5% of the companies value by my arithmetic.
What can they offer shareholders if they stuff up and the share value drops further from where it is now? A market cap of $35m is a joke. How much has been spent on the Sorby Hills project to date. How much would it cost to prove up and get approvals for a similar resource with todays costs? The mines close proximity to infrastructure, town, port might as well be non existent. I don't blame management to a significant degree for where the market and share value is. Lots of companies on the ASX are performing poorly. But I cant see the milestones they are proposing as worthy of reward. May be get the shares up to a dollar each, in the next few years, which is what one of the research outfits has suggested is fair value. Thats an $8 million performance bonus, some real motivation. A lot of money, but I wont grumble because I will be in profit, something I am a long way off from presently. Shareholders are risking their money investing in these speculative situations, there are no gaurantees of a profit or even the return of capital. We are responsible for our decisions and choices. If this company fails to recover its share price I will be an abject failure and it will take a while if ever before I can recover. Which is fair enough. Are the preposed performance rights for management fair enough?
We will see how the future unfolds, I have changed my sentiment to none. While the company is undervalued I think there are better opportunities available or pending.