Whats Happening, page-9

I’m sure the votes are in the bag, but I cannot bring myself to support any resolution which awards performance rights on the terms described, I am hopeful for the future of the company, and do believe (unlike some broken records) that money can be made in India if we can produce. I am grudgingly willing to endorse a performance rights scheme that incents key management to deliver Phase 3 quickly, and to spec. I say ‘grudgingly’ because I thought that is what their generous salaries are for and the massive devaluation in SP is because these same people (minus Cedric) seemingly failed with Phase 2. But anyway, without Phase 3 we are dead in the water. So, grudge parked if we can get what we need.

BUT the company is spending serious coin to build p3 capacity at 500 kpta and has shown us in some detail that the real value in the market exists at grades of 62% Fe or better. I cannot support a performance incentive scheme that bakes in incentives at a lower production capacity and at a lower output grade than what the company is actually (or should be) aiming for.  Their data, not mine.

Disappointed in the cavalier way they are so casually dispensing shares, options and performance rights without properly aligning it to what the company needs.