GMC: Where are we?, page-4

I'm already hating the sound of my own voice, but it seems unlikely that 1.7 billion options will be exercised within the next year, if that's the timeline to get to production. GMC can't rely on that $8.5 million, which hopefully won't be a problem. If it is, there's every chance are going to need more money at some stage. Maybe they will have a license to export ore while they get the smelters operational.

I've just noticed something else in the half-year report which I can't recall being mentioned.

"The share based payments of $2,550,500 incurred during the half year period relates to the 85,000,000 Performance Rights granted to directors and employees on 21 November 2016. As the Performance Rights issued were not market based, the rights were valued based on the share price at the date of grant. The share price at the grant date was 3 cents."

The vesting condition to unlock the first $510k of these performance rights is "Completion of financing for 1 & 2 smelters", which presumably will be achieved if the CR is successful. 100%+ dilution is required first, and then the GMC board (and employees) get a bonus valued at 100% of the CR price (1.5c), or 248% of the fully-exercised placement price (0.86c).

Coupled with the massive exercise of options leading up to suspension - it can't all be coincidental. But I doubt it's a surprise to most people at this stage.