GUF guildford coal limited

I have been looking to buy into this company given its Mongolian...

  1. 1,440 Posts.
    lightbulb Created with Sketch. 91
    I have been looking to buy into this company given its Mongolian assets but the Chairman1 arrangement is terrible for the share price.

    This arrangement will continue to hold the company back.

    1) Provides an incentive to the Directors to keep spending precious money in Queensland so that they can declare more resources under JORC to pocket the incentive. Qld coal projects are basically worthless at the moment, given high capital needed and low coal prices. The company should be focusing on Mongolia.

    2) It is in the interest of Directors for share price to remain low so that when they get paid their incentive (which in all likelihood will be in shares rather than cash) that they receive more shares.

    3) By 2015, when Chairman1 will get $100m in shares, their % holding will be around 70%. No institution will want to be in a company like this.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.