RE: CMK FINALLY RESPONDS......The reply you posted from Mr Cleave Said;
"All this talk about options is nonsense – folks will exercise options to maximize value to themselves. Would you expect investors to exercise warrants when they weren’t significantly in the money and rather make a modest profit instead? Each director etc. exercises according to their own judgment and their personal situation and always on a transparent basis. We have directors that have exercised hardly any options and others that have exercised regularly. It’s their business and I don’t ask. Similarly, a sky-high option exercise price provides zero incentive to anyone when the market reality is so different and if someone surrenders he does so completely out of his own volition. No director or officer surrendered options and then had new options awarded shortly thereafter. This hasn’t happened and cannot happen according to TSX and OSC regulations, as it constitutes option re-pricing. So much for that hysterical claptrap."
According to SEDI
Bates, Kenneth Harry
Transaction Date 2008-07-22 - Grant of Options +plus 400, 000 Options with an exercise price of 2.35 per share
Transaction Date 2008-10-30 - Grant of Options +plus 200,000 Options with an exercise price of 0.22 per share
Transaction Date 2009-03-24 - Redemption, retraction, cancellation, repurchase - minus 400,000 options with an exercise price of 2.35 per share
And subsequent to this Mr Bates Exercised those 200,000 options on 2009-04-29 and then sold the common shares the next day
Cleave, Ernest Michael
Transaction Date 2008-07-22 - Grant of Options +plus 400,000 Options with an exercise price of 2.44 per share
Transaction Date 2008-07-22 - Grant of Options +plus 400, 000 Options with an exercise price of 2.35 per share
Transaction Date 2008-10-30 - Grant of Options +plus 200,000 Options with an exercise price of 0.22 per share
Transaction Date 2009-06-02 - Redemption, retraction, cancellation, repurchase - minus 400,000 options with an exercise price of 2.44 per share
In addition to the option retractment on 2009-06-02 Mr Cleaves also exercised his Options for 200,000 shares on 2009-06-02, unfortunately there is no corresponding filing under his common share totals showing the addition of 200,000 to his shares which he exercised. Has Mr Cleave sold those as well and never completed his filing? Or does he hold them and just never completed the previous filing which added his option exercise to his common share total. In addition, the filing shows cancellation of the 400,000 shares at 2.44 , however there is a previously amended filing changing the price of the 400,000 shares from 2.44 to 2.35.
I wont bother posting the rest of the directors with similar transactions.
Why the need to grant options 3 months apart? What is even more shocking is the value of those issued in just 3 short months, you go from granting 2.35 options to granting 0.22 cent options in 3 months.
What did they do to deserve 2 so closely spaced option grants? So coincidentally far apart in price as well, stock tanks, and suddenly they deserve more options.
Mr Cleave was right, no officer had surrendered options then were issued new ones. They got more options first, then they did the cancellation and retraction. So much for that Hysterical Clap Trap as Mr Cleave the CEO states.
Mr Cleave fails to mention that if as a Senior Officer of the Company he will be looking into the sales of shares by Mr. Bates prior to the public release of information regarding the sale of Thyssen Krupps Cline shares to Mitsui. Perhaps also, Mr. Cleaves can also comment back to you if this transaction was a material event, and if so, as a director and officer of the Company he feels he has the responsibility of pointing this out to the applicable regulatory authority. If you were to ask Mr Cleaves this question I would put it in a registered letter and send it to him directly so that as Mr. Cleave says, it does not get mixed up as spam that they receive.
Mr Cleave further says
"It is important to note that management spends zero time tracking the price of the share and trying to understand why it moves and when."
Mr Cleave is Vice President and Chief Financial officer of the Company. For him to say they spend not time watching the value of their share price is assine. They have a duty to create value for shareholders. The value of a Companys shares is not only a reflection of market conditions, it is a reflection of their performance as a Company. I could continue on and on about this statement.
Above Mr. Cleave states
"Similarly, a sky-high option exercise price provides zero incentive to anyone when the market reality is so different and if someone surrenders he does so completely out of his own volition"
Surrenduring higher priced options puts shares back into their option kitty and increases the amount of shares that are available to be granted as options, even sometimes at cheaper prices.
Mr Cleave states;
"Let me have a whirl at the operational scene. The mine has every single permit / license / agreement etc. in place. The surface infrastructure is in place, including warehouses, shops, ponds, dump, conveyors and the other surface equipment and machinery. The dewatering is complete, the degassing is taking place as allowed for by the regulators. Every single movement of our mine is regulated by MSHA in the US and you cannot do anything without their approval. Cline has done everything is has been asked, but we cannot make bureaucrats and regulators move any quicker than your average governmental behemoth allows itself to be moved."
Mr Cleave says this is all in place, however he does not say how much of it is operational, and what steps need to be taken to make it operational. Also, if every permit, license, etc. in in place, what is with the comment about not being able to make the government / beurocrats move quicker? Similarly where he further states
Similarly, the press releases have been written to be equivocal, not “creative”. When the press release says that someone can walk to the face, that is what is means. We have not only a longwall in place, but numerous shortwalls as well, room and pillar areas etc. The purpose of Phase 1 is to get underground and create a proper mine plan and based on that assessment and plan develop Phase 2, which is commercial production. There are numerous ways to haul out the coal. We could just take coal without washing it and flog it by being selective in the seams; mine plan be damned and still make good money. The point however is to do everything in the most effective and profitable way. That is Phase 2 – 500,000 – 1,000,000 ton production, using trucks to the railhead. Again, nothing about this is the least unclear. Phase 3 is the 3 million + per annum scenario, which requires the rail-line – that is 20 million in cost all by itself. This has been shared repeatedly with the market.
So the longwall, the room and pillar, etc. is this all operational? So he says that a coal miner can walk the face, but can they mine? Is it ready for mining now? What needs to be completed for them to be mining? How many people read that news release and read it as if it were ready for miners to start?
People are looking to the Comapny for a full picture of what needs to be done to get this mine open. It has in the past on several occasions given time lines which they "Hope" to get the mine open in and start producing coal. Everything is always as soon as possible, yet personally it always seems to lack the information, at least to myself, to present a full picture. The ways some of their releases seem to be open to such wild interpretation (read all the past posts on this board just to see how wild it is interpreted) is unfortunate. Personally Iam still awaiting a full picture and outline including a full plan, which we can use to judge Cline's progress on better. As long as so much information remains so open to such wild interpretation, how does one judge the performance of the Company Officers and directors.
I have not day traded this stock. It is my wish for the Company to be successful. I do not make these comments in hopes of the share price dropping and buying cheaper shares.