Ann: Pre-Feasibility Study confirms viability of McIntosh Project, page-28

The new MD has now been in the job for 3 month.
In that time the stock price has gone from 26c to 12c.

The announcement of the new MD 3 months ago said that he will be due a short term performance bonus of 10% of his salary (subject to meeting certain criteria). We don't know what they are.

It also said there was long term performance bonus shares and options in the package, and that the package would be put to shareholders for approval as soon as possible.

We have never seen the package, or the criteria, and it's been 3 months.

Perhaps the criteria being asked to meet now, in terms of stock price anyway, would be far different than it was 3 months ago.

3 months ago there may have been a clause which indicated the stock price needed to be above 25c or 30c for performance shares to be vested - what do you think it would be now?

Are they going to wait until they think HXG has hit a bottom before defining the performance bonus and options?

These could have been easily defined and voted on 2 months ago, or more.

Will we see the original vesting conditions, as opposed to the new ones they may roll-out sometime?
As soon as possible seems to mean different things to different people.

And is there any criteria which judges some element of performance based on a stock price that has more than halved in 3 months?

Don't get me wrong. It seems to me the guy has been doing a reasonable job, though it's hard to tell from here. And he does seem to be pursuing some good options with regard to marketing and ore crushing, and they have bought on a very capable and recognised financial director, so it's well done with all of this. And I'll grant him that Graphite stocks are not flying, probably because the world has woken up to the fact that there is an awful lot of cheap available Graphite out there.

But, the stock price has been crushed, and the captain usually accepts responsibility for this.

So will the shareholders vote to approve the performance bonus and shares when they eventually see the light of day? And will it say they can be vested when the price is above 12/15c as opposed to 27/30c, like it would have said 3 months ago. It will be interesting reading when eventually released.

Still waiting for that meeting to approve, why not just get it out of the way and let's move on, get the marketing guy on board, some more metallurgy etc.

The main concern is really the purported target of 110 to 220 m/t, because that will take a lot of drilling, and a lot of money, and a lot of shareholder stock dilution. Very worrying this is, though not for an MD who may be granted millions of free performance options.

Gw