ARL chart, page-3609

My way of interpreting the remuneration package...

1MT @ 2% Ni eq. = 20,000T.
Ni price assumed at $18,000 per T, gives $18,000 x 20,000T = $360M at full valuation.
At 1% in-ground valuation = $3.6M.
Divided by 1.395M shares = $2.58 per class N performance share.

That's the value AP has to create for the class N shares before qualifying for conversion into ordinary ARL shares, which will have a different market price. Also means that AP has to discover NiS resource worth 100x the value of the class N shares.

1. These performance shares were created a while back when it was still just a hope that there would be a JV agreement with the JC. At that time the BOD had set a high bar for AP to reach. But not an impossible one.
2. Post formalising the JV agreement, but before completion of the DFS (performace shares expires in 10 months), ARL's sp is anticipated to be $1-$2 each. AP's achievements for the Goongarie Hub has produced a flow-on effect for his next KPI-based remuneration. The NiS discovery is must still be actualised, but for AP it will be financially worth the remuneration because the class N share valuation will be closer to the market sp. It's like foreign exchange, exchanging USD for AUD is better value for money the AUD gets closer to the value of USD.
3. The benefit for ARL is that the discovery of JORC-compliant NiS resource will be made at a low cost of regular drilling and assaying costs plus the value of class N shares.
4. Bear in mind that the NiS resource will likely far exceed 20,000T on completion of the full and extensive drilling campaign at Kalpini. That means the dicovery cost per ton of NiS resource gets proportionately lower.

Very good strategy and negotiation between the BOD and AP. Win-win.