TNG BRR, page-40

Couple of points:

1. Although $500k seems like a significant cash component of remuneration, after tax $250k doesn't go far. You expect him to save 40% of his post tax income year on year since allotment to fund them. Unlikely outcome.

2. Given 1., the only option is to lever through funding. I don't know of many financial institutions that would provide funding for a high risk resource company with a MC of less than $100m. Whether is was trading at 8.5c and 10c, commercially no one would ever fund it.

3. Given 1. and 2., only option is to mortgage the house. Can of worms!

I would have loved to see them be repaid but they weren't. Given the above makes perfect commercial sense albeit disappointing.

He's got another 4m due for repayment in Nov ($356k) and he gets gifted 2m upon successful financing.

Do I think he's the most incentivised he's ever been.....absolutely.