goedenavond Louis en forumgenoten, het heeft iets langer geduurd dan normaal, maar hier is mijn mailtje aan Steve en zijn antwoord. Ik heb het zelf nog niet doorgenomen omdat ik vond dat jullie het zo snel mogelijk mogen hebben.
good morning Sir,
there are two items on the Platform raising concern and wild guesses so I hope you can shed a light.
I will copy the text in the message.
07/27/2015
"AMG Advanced Metallurgical Group N.V. and Al Braik Investments LLC Agree to Develop a Silicon Metal Smelter Project in the United Arab Emirates
AMSTERDAM, Netherlands, July 27, 2015 (GLOBE NEWSWIRE) -- (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG") is pleased to announce that it has signed an agreement with Al Braik Investments LLC ("ABI") to develop an advanced silicon metal smelter to be located in KIZAD, Abu Dhabi, United Arab Emirates ("SIMA Project").
The SIMA Project is expected to be the first silicon metal smelter built in the fast growing Gulf Cooperation Council ("GCC") market. Silicon metal demand in the Middle East is currently 70,000 tons per annum, and is expected to exceed 250,000 metric tons per annum by 2025.
Under the terms of the agreement, AMG and ABI are conducting due diligence including finalizing the feasibility study, commercial agreements, project financing and technical specifications prior to making a final investment decision in mid-2016."
Is there an update on this project???
the second question is how we have to interprete the following and how it effects the EBITBA and bij extension the balance sheet.
"Performance Share Unit = "PSU"
On a year to date basis, EBITDA increased by 7% to $70.6 million, from $65.9 million in the prior year, despite an increase in AMG's Performance Share Unit ("PSU") plan costs of $8.7 million, compared to the same period in 2015, driven by AMG's strong share price performance Dr. Schimmelbusch participates in the short- and long term incentive schemes of AMG as set out in the Remuneration Policy. The annual bonus is based on the aggregate fixed base salary earned by Dr Schimmelbusch. The target payout is 85% of the aggregate fixed base salary, while the
maximum payout is three times the target pay out. Payout is based on performance criteria: set forth in the Remuneration Policy. The long
-term incentive scheme consists of two elements: a Performance Share Unit Plan (PSU) and a Stock Option Plan (SOP). Payout for the PSU Plan is
based on two performance criteria: 3-year average ROCE and relative Total Shareholder Return (TSR). Payout for the SOP is based on one performance criteria: 3-year average ROCE. R OCE thresholds are set by the Supervisory Board. For 2013, the net present value of the granted long-term incentives equals € 1,080,000 under the PSU Plan and $ 270,000 under the SOP Plan."
People are asking if this PSU and/or SOP will return every quarter and on what base the calculations are made.
I look forward to your answer in these matters. Yesterday the stock took a big dive on the figures. I don't think that the figures were to blame for this and I think a big party was manipulating the stock???
sincerely yours
Kris
Hi Kris,
With respect to AMG’s PSU plan – this is a companywide long-term incentive plan. As you noted below from the annual reports, PSU awards are made annually to a number of AMG employees and vest 3 years later, provided a number of very stringent performance targets are met – i.e. over the 3-year vesting period, AMG must out-perform its peers in terms of 3-year average ROCE and relative Total Shareholder Return (TSR). If these performance targets are not met in the 3-year period, there is no pay-out.
As you will have noted in recent annual reports, in recent years (prior to 2016), the PSU awards have not resulted in any compensation payouts to employees as AMG’s has not out-performed the peer group as described above. However, due to AMG’s exceptional share price performance in the last 18 months and strong financial performance, the PSU awards from 2014, 2015 and 2016 (which all vest 3 years later in 2017, 2018 and 2019 respectively) could now potentially pay-out to the employees in the scheme (depending on how AMG and our peers perform in the coming months/years) – hence the need to make the appropriate accruals.
Under IFRS rules, the accruals associated with PSU plans such as the AMG plans increase as the share price increases. In addition, if the share price moves substantially during a particular period, there is also an element of ‘catch-up’ to adjust the previously accrued expense for the current expected liability at the end of the plan.
As a result, AMG’s PSU expense in Q2 16 and Q3 16 was adversely impacted by these ‘catch-up’ accruals due to the positive movement in the share price. Unless AMG’s share price once again increases very substantially, we will not see the same level of expense related to the PSU plans (as there would be no need for these ‘catch-up’ accruals).
From a strategic growth perspective, AMG’s key priority is our Lithium project. We continue to evaluate other potential growth opportunities and will up-date the market in due course.
Best regards,
Steve