Abitibi Royalties Inc V.RZZ

RE:rzz

[calculatedrisk3]

Ian's answer was not the entire story.  Maybe he did not want to throw shade on Glenn.  All of the newly issued shares thru RSU's/options were not allocated to Ian.

The company had previously set up a situation, before Ian Ball was hired, where management (mostly Mullan) were to receive a large "success fee" as well as restricted share units and options on top of their salary. This information is all in the prior year financial statements.

It was possibly the influence of Rob Mc Ewen, once he became a substantial shareholder, and Ian Ball as CEO that cleaned up some of that situation as at least a portion of the "success fee" was cancelled and later on some restricted share units that had not been issued already were cancelled.  

The fact is that the share count has risen over the last twelve months, and he should not communicate that it is going down.  He could state that the fully diluted share count is going down (but that might not sound so good).  The interviewer did a decent job in my opinion.

Ian mentioned acquiring new royalties in the region.  I would love to know what kind of projected rate of return hurdle they require before making an investment in a royalty.