musings

Have had a bit of a hunt back through the last couple of Annual Reports and found a bit of information on this:

18th Nov 2005 - 4,000,000 Performance Rights were granted to MF and 4,000,000 Performance Rights were granted to Scott Reid with an expiry of 30th November 2007. The only condition on these particular rights was that the shareprice increases by 20% (which it surely has done). From what I can gather he exercised these performance rights on 2/1/07.;

2nd Jan 2007 - MF was granted 8,000,000 performance rights after the 2006 AGM along with (1) Scott Reid (6,000,000 performance rights issued which were subsequently cancelled) (2) Christopher Innis (2,000,000 performance rights issued which were subsequently cancelled) and (4) Louis Mnguni (2,000,000 performance rights granted). All of these performance rights have an expiry of 30th November 2008. From memory though there were rules regarding the status of the lifting of ore (this is outlined in the notice of AGM which I am having issues downloading.

This leads to a few interesting questions which I think we can reasonably expect an answer on. Firstly, granted that there is a disclaimer in the issue of these rights where the company has the discretion to waive all performance right requirements ... why would they waive these requirements when these things will not expire until some stage next year? Secondly, why would the management risk angering shareholders by exercising these rights without actually starting mining?

I suspect they may have actually commenced mining the deposit at Perkoa and they are saving this little pearl to try and get their remuneration policy through.

Either way, something is not adding up.