Asiamet Resources (ARS) has implemented a long-term incentive programme for key executives designed to align remuneration with the achievement of major funding, development and operating milestones in regard to its BKM copper project in Central Kalimantan, Indonesia.
LTIP grants will be in the form of performance rights convertible into shares upon the achievement of certain vesting criteria.
Performance rights will be issued in three tranches sequentially, with the vesting criteria for each tranche linked to clear value milestones for the company. Examples of vesting criteria include completion of a full project finance facility for the BKM mine development, the sixth month anniversary of the first drawdown of the project finance facility, and achieving production milestones.
"Implementing the executive incentive programme is critical to attracting and retaining high calibre executive management,” said Asiamet's chairman Tony Manini.
“Importantly, it ties executive incentives directly to the delivery of key value driving milestones - from securing a full project funding package, to mine construction and the steady state production of copper. These incentive targets represent complex, multi-year achievements with each vesting milestone in the LTIP delivering a significant step-change in value for shareholders and stakeholders. By directly aligning executive reward with transformational outcomes for the Company, the LTIP ensures management success is closely tied to shareholder success.”
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Incentive plans like this align directors more fully with the interests of shareholders and are therefore generally welcome. This one comes at a time of relative strength for the Asiamet share price, as mining markets have recovered their poise, there’s a squeeze on copper supply, and the company continues with progress on BKM.