MONTAGE GOLD ANNOUNCES EXECUTIVE INCENTIVE PLAN MILESTONES
Following the Annual General and Special Meeting of Shareholders held in
The 2024 STIP corporate objectives focus on achieving the critical milestones necessary to launch the construction of Montage's flagship Koné project by Q1-2025, in addition to further enhancing the project's economics through exploration success, as summarized below:
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Project Development (35%): Completion of the Front-End Engineering Design (FEED) study and all other necessary works to allow for a construction launch for Q1-2025; - Permitting (25%): Obtaining environmental and mining permits;
- Financing (20%): Securing funding for the launch of the Koné project;
- Exploration (20%): Advancing exploration on higher grade satellite deposits with the goal of delineating resources by year-end;
- In line with Montage's focus on Health and Safety, a reduction of 25% will be applied in the event of a serious incident resulting in multiple injuries or a fatality.
The 2024 performance-based objectives provide clear, measurable, and transparent targets, which will be further detailed in next year's Management Information Circular. The potential payout multiplier ranges from 0% to 200% of the targeted bonus based on achievement.
As part of the 2024 LTIP programme, senior executives will receive Performance Share Units ("PSUs") which strongly aligns management's interests with those of shareholders and rewards for good performance against the Company's peers. A sliding scale determines the payout factor for vested PSUs based on Total Shareholder Return ("TSR") performance relative to its peer group, with a maximum payout of 200% and a minimum of 0%, over four weighted performance periods, as follows:
- Years 1, 2, and 3: 10% of PSUs vest annually based on the relative TSR performance in each year.
- Cumulative Three Years: 70% of PSUs vest based on cumulative TSR performance over the entire three-year period.
- Regardless of performance against the peer group, if the Company has a negative TSR in any performance period, the multiplier for that period is capped at 100%.
In line with the 2024 LTIP programme stated above, the Company has granted a total of 1,636,200 PSUs to senior executive, based on their pro-rata involvement with the Company for 2024. The PSUs are subject to a three-year vesting period and are subject to the performance-based achievements as stated above.
While senior executives will receive PSUs, the Company has also granted an aggregate 983,680 incentive stock options to certain employees and other eligible persons of the Company. The options are exercisable, subject to a three-year vesting period, over a period of five years at a price of
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QUALIFIED PERSONS STATEMENT
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FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian securities legislation (collectively, "Forward-looking Statements"). All statements, other than statements of historical fact, constitute Forward-looking Statements. Words such as "will", "intends", "proposed" and "expects" or similar expressions are intended to identify Forward-looking Statements. Forward looking Statements in this press release include statements related to the Company's stated milestones and objectives including project development, permitting, financing and exploration results; the timing and amount of future production from the Koné
NON-GAAP MEASURES
This press release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including cash costs and AISC per payable ounce of gold sold and per tonne processed. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. The Company discloses "all-in sustaining costs" (ASIC) because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS, do not fully illustrate the ability of mines to generate cash flows. The measures, as determined under IFRS, are not necessarily indicative of operating profit or cash flows from operating activities. The measures cash costs and all-in sustaining costs are considered to be key indicators of a project's ability to generate operating earnings and cash flows. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS. Readers should also refer to our management's discussion and analysis, available under our corporate profile at www.sedar.com for a more detailed discussion of how we calculate such measures.
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