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all shareholders will be able to vote soon enough in whichever way they see fit. It looks like the company will have plenty of funds to progress Cyprus if voted through...
That is very generous and public spirited of you Paul. I'm sure if you email the company then they will be able to sort that out for you.
Once again, thank you for your generosity.
I don’t want a dividend of any description.
I would prefer the money to be used for the Cypriot Venture.
Fantastic!
Hi Ash
Yes my notes from the November meeting said money to build mine not from diluted equity but Bank borrowing I wrote in my notes basically an open cheque book arrangement using Ozaltin’s leverage to raise the finance and make that finance work to create value.
Thanks
Hi Dubbs, I think it just means that the new JV borrows the money without any partner having to put in any further capital. Interest costs will come out of the JV profit.
Cheers, Ash
VanVan - yes of course
Well said Dubbs. It must be in that sort of an order. Could we post your numbers on AFVFN?
An updated Panmure Gordon Note might help to support this argument.
Thanks VanVan, our posts crossed. On that basis the deal is worth at least £200M to us, as you would hope for, for 53% of 1.5M oz of gold. Seems hard to believe that that is the case simply because our mcap remains so low - does Kerim need to spell it out in words of one syllable?
But with a non-dilutive deal and a 'free-carry' on future costs of development, so do Ozaltin build the mine, at no cost or future share dilution to Ariana, in return for 53% of future profits from mining at least 1.5M oz of gold? That mine cost would have been in the 100s of millions to Ariana of course. So in very simple terms: Ozaltin pay a lot of up front, $30M dollars now plus another $8M soon, plus, lets say £200M to build the mine and infrastructure and can then earn, say, a minimum of £500 net profit per oz in return - 1.5m oz x £500 x .53 = £397.5M. If Salinbas eventually ends up having 4M oz, they can multiply that profit by 2.7! Ariana would receive a minimum of 1.5M oz x £500 x 23.5% = £176.25M but with no development/build cost in the first place. If that is accurate our share price should be re-rating so I assume I'm wrong on something. Can anyone put me right?
For me there are three big takes from today's RNS.
1. The deal goes through in one hit, no two stages. No earn-in delays. This is much cleaner and removes ongoing legal crap etc.
2. The special payout (approximately 50% of net proceeds after costs & tax on completion of the Transaction) is going to be bigger than original suggested. This is supported by the tremendous unstated strength of Ariana's current balance and its confidence in its ability to progress the current assets (Tavsan, Kiziltepe & Cyprus) without the need for further significant investment.
3. Ozaltin will build the Salinbas mine at free carried on further costs associated with the development of the Salinbas project. I was at the original meeting when the Deal was announced last November and few could believe this aspect. But here it is again in black & white. So Ariana at no cost basically will end up owning 23.5% of all the profits from what could easily be a 100,000 oz p.a. mine. I'm still not sure the significance of this has been understood.
Free carried on Salinbas Development = finance is being provided as part of the deal, original RNS said $8m
Picking up on Dubbs99 comment. VanVan can you elaborate on this please. Not sure I understand this bearing in mind finance will be needed to take this to production.