The board of uranium explorer Vimy Resources has given its members a haircut and slashed executive pay just months after wrapping up a feasibility study on the company’s flagship Mulga Rock project, 240km north-west of Kalgoorlie-Boulder.
Non-executive directors will take a 10 per cent pay cut from this financial year.
Meanwhile executive remuneration could also be scaled back by 20 to 40 per cent by allowing executives, including managing director Mike Young, executive director Julian Tapp, chief operating officer Tony Chamberlain and chief financial officer Ron Chamberlain to take on external consulting work as unpaid leave.
Mr Young, who recently paid $27,000 to bolster his personal stake in the company on-market by another 300,000 shares, said it was not just weak market conditions for the nuclear fuel behind the decision. “The technical work on the project is winding down so that means the full-time work for our guys has tapered off,” he said, adding the decision would keep key executives engaged with the company.
“You can always find work for our guys to do, fiscally it’s a good thing to do just to taper back, but the really important thing for me is to keep the guys together.”
Mr Young said Vimy was retaining full-time staff to explore its newly acquired Alligator River project in the Northern Territory, as well as US-based marketing expert Scott Hyman, who is talking to utilities to secure offtake contracts to back a future investment decision on the $493 million Mulga Rock development.
“His activity is the most important one right now in terms of progressing the project,” he said.
“It’s about getting contracts from utilities and he’s well into discussions with utilities.
“Even before he joined us he was with Cameco having discussions, so he’s got the contacts and he’s got the relationships.
Vimy stock was unchanged at 11¢ yesterday.
Source: The West Australian
