IMO, everyone is not working for free as clearly indicated below
Performance shares vest from 1000 oz etc - Will Cascavel be cash flow positive with 1000-1500 oz produced per month ??
As per 28th March 2018 Annual report - Refer to annual report - half yearly at 31/12/17
''Service Contracts
Remuneration and other terms of employment for Executives are formalised in executive service agreements. Major provisions of the agreements existing at or entered into since balance date relating to remuneration are set out below.
Mr Jeremy Gray – Managing Director
• Term of Agreement – No fixed term or contract
• Fixed Remuneration – $100,000 per annum
• Termination Provisions – No formal notice period
Mr Albert Longo – Chief Financial Officer
• Term of Agreement – ongoing subject to annual review.
• Fixed Remuneration – $250,000 per annum plus statutory superannuation.
• Variable Remuneration – The Officer is eligible for participation in the Company’s Employee Incentive
.
Dr Klaus Petersen – President, Orinoco Brazil
• Term of Agreement – 3 years.
• Fixed Remuneration – US$230,000
Mr Marcelo Carvalho – Chief Geologist
• Term of Agreement – ongoing subject to annual review.
• Fixed Remuneration – $219,000 per annum (Brazilian Real $536,000 per annum).
.
Mr Richard Crew – Chief Operations Officer
• Term of Agreement – ongoing subject to review.
• Fixed Remuneration – $125,000 per annum (Brazilian Real $312,000 per annum).
The key terms of the Non-Executive Director service agreements are as follows:
• Term of Agreement – ongoing subject to annual review.
• Chairman’s fees of $60,000 per annum plus statutory superannuation.
• Directors’ Fees of $48,000 per annum plus statutory superannuation.
Performance rights - vesting from 1000 oz as below
One third vesting when 1,000 ounces is achieved for 2 consecutive months from Cascavel for a total of greater
than 2,000 ounces over the 2-month period.
• One third vesting when 1,500 ounces is achieved for 2 consecutive months from Cascavel for a total of greater
than 3,000 ounces over the 2-month period.
• One third vesting when 2,000 ounces is achieved for 2 consecutive months from Cascavel for a total of greater
than 4,000 ounces over the 2-month period.
• A further 5,000-ounce milestone per month has been set for Mr Richard Crew (COO).
During April, the Company announced that it had entered into a binding agreement with its minority partners in
Cascavel to acquire their combined 30% interest for a combination of cash, shares and a production royalty. Key
terms as follows:
- US$300,000 cash plus US$300,000 in shares paid as a deposit on signing the agreement
- US$1.5m cash and US$1.35m shares paid on 1 September 2017
- US$1.5m cash and US$1.35m shares payable on 1 September 2018
- A royalty of 1.5% on production from Cascavel (net of gold delivered to the Company’s existing finance partner) commenced on 1 September 2017
Further to this, on or before 1 March 2019, Orinoco must either purchase the royalty for US$6.0m, pay an increased royalty of 3% or pay US$3.0m to keep the 1.5% royalty.
DYOr
