no hidding now, page-10

Well al3,

Congratulations on becoming a member of HC since… let’s see yesterday. There are a few things we should point out…

You said “They can’t raise the exercise price of an oppy. It’s set in concrete”.

What absolute rubbish! They could have set the exercise price of the options higher than the existing share price, say at 20c for arguments sake and that way it is clearly demonstrated to the market that the company perceives that there is some upside in the share price, and one would sincerely hope so… at least before 30th September, 2009 – more than 2 ½ years away. Many companies do this and then the share price does not plummet on the news. Who is to say that the very members of staff who probably knew this was in the pipeline did not sell their existing shares so that the exercise price would be lower when it was being determined… as well as selling some of their shareholding yesterday… again knowing that the market would react unfavourably to the news.

You said: “Anyway they are staff opions(sic)… non tradeable …. They have to exercise … and then trade on market…. “

So these ‘non-tradeable’ options you immediately admit are in fact eventually tradeable. DOH! You got that right. And for a measly exercise price of 5c before 30th September, 2009. Gee if the share price does go up to say 20c before 30th September, 2009 then they will have an upside of 300% on their outlay of 5c. Not bad at all. Meanwhile, the company receives a mere pittance of what the true value of the share is. Thereby diluting existing shareholders funds. Further, if there is a takeover before 30th September, 2009, they would more than likely be paid out of those options – and be ‘relieved’ of the effort of having to pay the exercise price. Money for jam wouldn’t you say.

With a current p/e ratio of 790 it is hardly the time to be giving away late Christmas presents.

You said:”Anyway the staff deserve some profit for their endeavours...”.

What? Tell me exactly what those Top Twenty shareholders listed below did in their so called ‘endeavours’. Do you work for the company? Are you, in fact, one of those top 20. Now that wouldn’t surprise me. Otherwise why do you come out in defence of this announcement.

Item 35 - Top Twenty Holders of Additional Securities
Name Number Percentage of
Held Additional Securities
LC (Asia) Limited 50,000,000 48.47
Eevo Pty Ltd 26,450,000 25.64
Queensway Investments Pty Ltd 16,375,000 15.87
Mandevilla Pty Ltd 2,500,000 2.42
Fidelity & Security Nominees Pty Ltd 1,500,000 1.45
RM Capital Pty Ltd 1,000,000 0.97
Mr Allan George Bassett 500,000 0.48
Tisan Industries Pty Ltd 500,000 0.48
Ms Gillian Arkwright 450,000 0.44
Mrs Penelope Anne McGuckin 250,000 0.24
Mr Timothy Putt 250,000 0.24
Tisan Superannuation Fund 250,000 0.24
Caconda Pty Ltd as Trustee for Kalgoorlie Mine
Management Pty Ltd Superannuation Fund 250,000 0.24
Kalgoorlie Mine Management Pty Ltd as Trustee
for Kalgoorlie Mine Management Pty Ltd
Superannuation Fund 250,000 0.24
Jadel Pty Ltd as Trustee for Kalgoorlie Mine
Management Pty Ltd Superannuation Fund 250,000 0.24
Coniston Pty Ltd as Trustee for Kalgoorlie Mine
Management Pty Ltd Superannuation Fund 250,000 0.24
Mr Neville John Bassett 250,000 0.24
Mr Norman Grafton 200,000 0.19
Mrs Sharin HL Grafton 200,000 0.19
Miss Angela M F Grafton 150,000 0.15
TOTAL 101,825,000 98.72

No. of securities issued 103,150,000
Exercise price $0.05
Exercise date: 30th September, 2009/


Enjoy your time on Hot Copper al3 :-)