from what old mate said, retention was I think 5% of salary paid out over 3 months and production bonus was based on ridiculously high targets. He said that it was marketed as a 'win-win or a profit sharing arrangment' ie the company had to make money before it shared it pro-rata with the guys. I remember figures of 50kt and 60kt were bandied around - have they ever got 50 or 60kt? (even historically??) Hence the guys got excited for a shift, realised it was a bunch of ****, and kept on keeping on.
So, answering your questions are they justified? retention no, production yes (if profit sharing) have AXM met the targets and are cash positive? I think not.
More questions: are they in a heap of trouble? Yes How precarious is the situation? I'd wager that the quarterly report will reveal some (not all). Given that the sale of Youanmi hasn't been announced/gone through, they'll be on a shoestring (or "Creative Accounting") to make the quarterly look semi-respectable. Anyone know the date???
AXM Price at posting:
1.8¢ Sentiment: None Disclosure: Not Held
