RE:RE:2017 NI 43-101 Technical Study Update - salesPedroPistacio wrote: Hi Stan. Two things. On the NPV, whilst the NPV value would definitely have been calculated to a lower figure if the lower production/sales were known and inputted in the calculations back in 2017, is it not the case that we will now be putting figures into the calculation now that are similar to those used 4 years ago (and also more reliable, given some proof of sales), but simply 4 years later on, and so the discounting should not look too different given the NPV start date is now 2021. In fact with higher margin products now hopefully being sold then the NPV could be higher?
Secondly, on the upcoming AGM/vote, please can you either remind me or direct me to your earlier post as to what the CEO's pay will be in 2021/2 in terms of cash basic and also his bonus based on the targets, and what that bonus breaks down to in cash/shares/options. I am preparing my proxy vote.
Many thanks.
Hello Pedro,
The CEO's compensation for the last 3 years is set out in the Management Information Circular on page 22. His 2021 compensation was disclosed in the March news release as follows:
Base salary: $420,000 (R$1,750,000)
Bonus: Sliding scale starting at $210,000 and rising to a maximum of $420,000
Stock Options: 750,000 common shares at $1.22 with an expiry date of March 2031
On the NPV study, your observation is correct. The past 4 years could all be classified as the "pre-production" stage that was identified in the NPV study as Year -1, and the study rerun with 2022 reset as year 1. The cumulative production of the last 3 years is a rounding error on the overall proven reserve figure.
That being said, it would be difficult to claim the same production ramp up (600,000 in Year 1, 600,000 in Year 2, 5,000,000 in Year 3) given the actual growth achieved (not achieved) in the last 3 years.
Let's wait and see what the Company does - I believe it it will be a very revealing exercise no matter what they do, or don't do, in the update.
Have a great week.
Cheers,
S.