Wednesday 3 June 2015

Morning Mumble par Deux:Share Sales (GLEN), Share Options (AUE) + Iron Ore settling

Par deux,

Glencore had William (Bill) Macaulay flog the remainder of his holding in Glencore (GLEN) 42,071,878 shares for a combined total of £117,744,367.35. Having only two weeks earlier notified the market he sold 27,974,350 shares grossing £84,370,639.60 (Combined gross total:£202,115,006.95). What this signifies in respect of GLEN's key market and likely performance is another matter. 

The potential of Aureus Mining (AUE) with ramp up at Liberty, its a little disappointing to see the company grant stock options. Lets face it, these options type hedges are becoming a trait of AIM, although AEU could argue they need incentives. Is David Reading's annual salary of $548,623 insufficient, (Inc. Salary, other short-term benefits and share based payments). The other directors, its fair to say it's reasonable in light of their smaller salaries of circa 70K inclusive. With such little skin in the game as a percentage of the company, its hard to justify the incentives

What companies like AUE should be aware of is the growing share register of "more serious investors". Whom are not fearful of raising their objections. You could argue it's justifiable, but its also fair to assume its simply somewhat unfair on the basis of the the shareholder returns to date, over the longer-term.

With volumes still up on the Dalian Commodity Exchange (DCE) for iron ore, a split between physical demand and speculation of near 50/50 is maintaining the price, although easing slightly. One would still be wise to keep an eye on the volumes before taking a position.

Atb Fraser

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