It’s been a long day doing other, real-world things (while trying to keep at least an eye on this newly interesting miners’ market). A couple of loose ends that may have warranted posts under normal, non-time constricted circumstances, today they just get a line or three:
LSG Payola: Here’s the thing about the “Change of Control” payments for the CEO of Lake Shore Gold (LSG) (LSG.to), Tony Makuch, as per the latest Management Information Circular: “...the CEO would be entitled to a payment equal to 30 months’ salary plus an amount equal to 2.5 times the average of his previous two years’ bonus payments, and benefits coverage for two years (or payment of an amount sufficient to obtain comparable benefits coverage)” As Makuch is on $55,000/month, that’s $1.65m for the salary element. As for the bonus payment element, I don’t think that includes the options and shares awards payments, just the cash bonuses. If so it works out at $2.11m. If not it’s more. So, at least $3.76m bonus payment for Mr. Makuch thanks to him agreeing to this shitty deal with Tahoe Resources. Nice work if you can get it.
TAHO Conflict: Scotia has been pumping this LSG/TAHO deal so hard it’s like watching elephant porn. Hey, do you think Tanya Jakusconek, who is both senior precious metals analyst at Scotia and on the board of directors at Tahoe Resources, would have anything to do with that? D’yathink?
UEC is Ruled: Did you see how Rick Rule shafted Uranium Energy Corp (UEC) this morning? Wowsers, nearly a million shares awarded, the warrants dropped to $1.35, plus more payments in shares in the years ahead, all for merely booting the payments into the future. And that’s just the announced stuff, as we hear there’s a hefty rollover fee to be paid too (that’ll get line-itemed on G&A and never see the full light shone on it, most likely). I have to be honest, I can’t help but admire the way Rule shears the sheep seven times instead of killing it once for the meat (that can come later), but it’s another lesson in how slanted the playing field is against us at the retail end.
CNL Beginner’s luck: Mister Paul Begin of Stockwatch has his own view on Continental Gold’s (CNL.to) news release today:
Two things to note:
1) He’s wrong. It’s very affected. See here for more.
2) Never trust somebody’s view on a location if they don’t know how to spell it.