Ann: Issue of Performance Rights, page-2

Am I missing something here or misreading the message - in regard to the announcement of the issue of performance rights (nearly 5million to directors, executives & employees).

It was stated that these rights will not vest unless the Board is satisfied that the conditions set have been met. These conditions include "substantially increasing the company's resource base or conducting studies showing the potential to generate an IRR (not spelt out, but I presume it to do with a rate of return on something) ........and Board approved cost assumptions. Then under conditions it stats "the determination as to whether the above objectives have been met will be done by the Board of the Company in a timely manner, acting reasonably and in good faith".

There seems to be a few vagaries in the announcement, not the least is that the Board is setting the Rules and then the Board is being the Arbiter on whether these vagaries are attained. It strikes me also that by announcing it now they have dodged a bullet on one of their performance conditions - that of undertaking a significant acquisition. Well, they did that back in February and March this year when they acquired $4,682,330 worth of Oklo shares at an average of 20cents. These were sold in early March for $5,624,394 (at 24c per share). A nice earner of just under $1m. for 6 - 8 weeks investment. But whatever the trigger for the Board to enter into buying the shares somebody was trigger happy when they sold. When I looked before posting Oklo shares were 35.5c. An extra 11.5c on the selling price of 24c. This could have returned another $2.69million.

Which raises the point as to performance rights in companies. It's all one way traffic for the management and employees - if things go OK they are on a winner. If things go pear shape, nothing changes for them. It's the shareholders who cop the downturn in the share price.

For the time I've had these shares, they've gone nowhere. I think I'll be voting against the rights issue.

MM