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Badomen - I agree that it is important for Kodal that the licence is transferred to KMUK asap. Beyond that, if you believe that we will be shafted, that BA didn't ensure enough protection in the contract, that he would allow his own shares to be massively devalued, it is probably best to sell up and move on. For myself, I think BA and the Malian government will ensure that we get a reasonable price for the output, and that any buyout will be at a fair price and fill the coffers with enough cash to fund the gold projects going forward. So I will be holding.
Kodal shareholders have to agree to the contract. It will be at market price. Hainan will basically be paying themselves for 60% of the Spod prodded through 52% JV and 17% Kodal ownership so I’m sure the price won’t be as important to them as keeping the costs low and the plant running efficiently and on time. In the meantime they have to source Spod from other providers which they don’t mostly own. They will be keen to get this in production asap. Full takeover will be on the cards for Hainan for sure but they won’t pay over the odds, and I don’t think it would be at a level kodal shareholders would accept I.e. > £250m
Redorb, yes I would definitely want market price for the offtake because we are a low cost producer.
If we had been a high cost producer arranging when lithium prices were high, either a capped and collar or fixed price would be better.
But nobody will get those deals while prices are low.
That’s for the offtake agreement red not takeover of KMUK.
The RNS states:
"It has been agreed between Kodal and Hainan that any offtake agreement reached between KMUK and Hainan Group will be based on market prices for spodumene..."
So, no, not at a premium, but based on market prices. Not unreasonable IMO
If I was the customer for 100% of the butchers meat, already owned 51% and could claim back all of the money I invested at any point I’d think my chances of a takeover at a price I want would be one of the easiest deals I’ve ever completed
Badomen, really you don't get it. It is JV agreement driven. Try going into town and doing a hostile takeover of your local butcher who is limited.
PLCs are where takeovers, controlling interest etc means you can take the rest, dictate rules etc not limited business.
Do some reading.
Totally agree compo. In a Ltd company you can’t make someone sell their share. You can only offer an amount at which they will sell. Even if you own 99% of the shares.
My point is Compo they won’t be paying a premium and can fully control negotiations
You’ve just shown your complete lack of knowledge Lav and is a worry that so many follow your posts and opinion. Check the details in the 19 jan 2023 RNS. ‘Hainan will acquire a 51% shareholding in KMUK by way of a $94.34m share subscription’. Limited companies can and do have shares but not publicly traded shares, Hainan are the controlling partner in the limited company.
Badomen - I'm not sure what you are wittering about. Yes, Hainan has the controlling interest, but so what? They are a mining company and they presumably want to be productive as soon and as cheaply as possible. They can't force Kodal to give up our share. What is your point?
Look into it properly Abdomen and try and get a better understanding.
The difference between limited companies and public limited companies.
Shares are in PLCs.
Personaliy I am a little concerned.As long as the licence completes it's fine,if it doesn't kod are on the hook for a large sum.The UK govt have been doing a Lot of china bashing lately no doubt on US orders,and I'm sure the Chinese would love to get one over on the UK... hopefully kMUK don't get bent over but anything is possible,I don't imagine Hainan are very charitable,they are all about profit after all.Really needs the licence tied up,signed sealed delivered.Not selling, but will feel happier with licence.
The fact it’s limited rather than public limited company means KMUK shares aren’t tradeable on the public stockmarket. It doesn’t change the fact that under the JV agreement Hainan took 51% share of KMUK which gives it control
Badomen, conveniently you forget past discussions to push your point of view - negative as always.
Kodal has a JV agreement with Hainan that forms the basis of their agreement.
For about the fifteenth hundredth time, KMUK is limited not a PLC, therefore the JV agreement dictates the limited company arrangement.
Kodal Minerals is a PLC of which Hainan owns a small percentage, it is in a PLC where percentages mean power not in limited companies.
Agreed badomen, we're being played like a fiddle
As Hainan have a controlling stake in KMUK, full control of future outputs and the right to reclaim the $100m at any point as the licence hasn’t been transferred then Kodal aren’t in a strong position to negotiate a high price.
I wonder at what price hainan will buy out kods 49% share.