BYR looks a good risk-reward proposition to me. Positives are low market cap, good tenements, good early drilling results, very experienced and capable management, and they're spending on exploration rather than administration. All excellent.
The main obvious negative is the country they're operating in - high sovereign risk. But there are several majors also operating in DRC and anyway that's all part of the risk-reward equation. So quite ok with me.
Which leaves the one thing that does concern me: management has so little skin in the game. They're clearly not paying themselves much in wages and, from what I can see, they own a total of 2.7 million ordinary shares and 3.5 million performance shares. At today's price that's $167,000 (about 1.5% of a very small company).
So two issues: first, if management believes they're onto a good thing in DRC, why don't they own more of the company? And second, what's motivating them to really perform? I'm not saying they aren't performing - on the contrary. But for working in a place like DRC you'd think they'd want to be paid a fair bit more in wages or - more realistically - have a lot more exposure to the share price upside.
Thoughts anyone?
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