RAB has posted a lot while I have been mulling over what is written below and may be somewhat redundant.
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I never made the debate team but one of the things that was drummed into us was how mathematics, statistics and percentages can create strong or weak arguments. The stronger argument wins on the debate podium so understanding 'what the numbers really mean' is often critical.
Speccy gives these "dramatic" percentage change figures:
The source is probably this:
Mathematically Speccy's percentage increases are correct. But what do they really mean?
Share Based Payments are the main amounts that skew the percentages.
4 X $220250 = $881000 for shares and options - what are these?
They were approved by SHs at an EGM in July 2017 along with other financial issues including 85M warrants.
The issue price of ?12c probably at a discount to the market (~~15-20c SP) at time.
From the Annual report (HC section) comes this statement.
IMO the worst case scenario for the company is if the SP doesn't hit the strike price then the cost is not recouped from the sale and the shares are in some sort of limbo but may have some value. If the strike price is hit then the directors get a 25+?% bonus and the company is out by the cost of holding the shares and leave it up to the accountants to sort out CGT.
At today's SP (say 32c for easy calculation vs issue of 12c (2.5M shares) or 20c "profit" per share) the directors could get a "bonus" of some $500K!
This leaves many questions that directors/board need to have considered when making a decision. Including but not limited to:
How would one calculate the percentage annual remuneration change in this situation? CGT?
How much did it cost the company? Only loan and admin costs or more?
What would 10M shares hitting the market do? Would OCL group be allowed to buy them?
Significant increases for PH and SL way above national averages.
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Other year on year changes that affect the overall percentage increase;
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The above is only one aspect of Speccy's post but indicates how complex such issues are and how they can be perceived differently - at the time and (perhaps more clearly) with hindsight.
The board/management; OCL, Speccy, myself etc all have agendas that may or may not conflict. Probably similar for society in general and issues open to debate.
Voting is the way to let the company know investor sentiment after DYOR.
The OCL issues were not opposed much at the 7/17 EGM but the share issues were with resolutions 3, 6-9 (inclusive) having close to 30% votes against. Does this carry any implications for 25% ruling or is that just remuneration.
AML Price at posting:
34.0¢ Sentiment: Hold Disclosure: Held
(20min delay)
