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What happens now with their shares. Say asx lifts the suspension does everyone dump them as quickly as possible and could be worth a lot less or is their a guaranteed 0.43 per share?
Anyone have an answer to this?
- it will remain suspended until dela is done.
or
- open down.
So open down and the shareholders may get less than 0.43 how how does that work with the deal?
Not good. The Mali gov, hand in hand with Wagner group are ousting Western companies for resource projects across the board.
Bridgedogg1……..utterly stupid comment.
RNS From Firefinch:
Settlement with Government of Mali and Agreement with Leo Lithium and Ganfeng
https://www.investi.com.au/api/announcements/lll/c0288d09-a3c.pdf
The Government also raised concerns regarding the transfer of the Torakora exploitation permit
underpinning Goulamina (the Exploitation Permit) from Timbuktu Ressources SARL (TRSL) to LMSA
(a subsidiary of MLBV which is jointly owned by Leo and Ganfeng) and established a Negotiation and
Renegotiation Commission between the Government, Firefinch, Leo and Ganfeng in relation to
issues relating to Morila and the alleged irregularities in the transfer of the Exploitation Permit,
among other things (the Commission). Leo has denied the alleged invalidity with the Exploitation
Permit.
Notwithstanding that each of Firefinch, Leo and Ganfeng have presented information to the
Commission that Firefinch and Leo are not connected (other than Firefinch’s 17.6% shareholding in
Leo), the Government has insisted on conflating its concerns with Morila and Goulamina, proceeded
on the mistaken view that Firefinch and Leo were one and the same company and has insisted that
its concerns are resolved on a global basis.
The Government has become frustrated with Firefinch and Leo not agreeing to the Government’s
demands. As the dispute has become increasingly acrimonious, Ganfeng has become involved in
attempting to resolve the dispute and has become the primary channel of communication between
the Government, Leo and Firefinch
Firefinch has become aware that the Government was poised to find the permits and licences of
Goulamina (including the Exploitation Permit) as invalid or irregular such that LMSA would lose title
to Goulamina and be prevented from commencing production unless, by no later than 7 May 2024:
More in the RNS
DYOR
GLA
I take from this is that the license transfer will likely see it brought under the conditions of the 2023 mining code.
One thing I’d be particularly interested to hear about is the ‘Government’s demands’. I suspect Leo will release further details on this in the fullness of time.
Utterly stupid?> DYOR
https:// www.fpri.org/article/2022/03/the-wagner-groups-playbook-in-africa-mali/
Rory, no I think the fine keeps them under the old code. But effectively it is the duty benefits repaid (they got massive tax breaks under the old code)and a further 12m dollar fine. So in some ways - yes.
It is worth stepping back and looking to see what FFX did with the Morila mine. Then:
The escrow account and 15.9% of Leo lithium shares this year 2024. So there is a connection - is anything to do with those share conditions connected to the Morila mine? You would have to go through historic detail. But the two companies are connected.
Look back prior to Leo doing DSO ore sales and see the lack of submissions, approvals or permits. Nothing formal on record in RNS form from the government for direct ore selling.
In contrast look at the time and effort our team put into ensuring everything was perfect just to add a DMS plant on site.
After all of this has been through the wash I think you will find a catalogue of errors - the dangers of using some consultancy services.
It is the same here, some unproven systems being used that one day will be tested either in an event or court of law and they will either stand up or they won't.
The rule is when you have a lot to lose don't push your luck/the envelope.
Firstly, it’s in the RNS that Goulamina will be moved to the 2023 code.
Secondly, I completely agree with your points - Firefinch and Morila, Firefinch and Leo are very closely connected, and Leo pushed their luck more than once - and the Malian govt are right to feel aggrieved here, and to try to remedy the situation.
But, I’d like to know what the government demands are. That will give us some insight into the govt’s motivations.
I can see the Malian govt trying to move all newly issued and changed permits to the 2023 code, that will give them the ability to take a much greater stake (including free carry) in the project.
leo lith has made an **** of the interaction with the mali government, i would say underestimated them. gangfeng have moved the australian element out to build relations with the mali government and to maximize profit from the 211mt of lithium.
Rory, you are correct, so I think from memory that affects some more tax breaks during production. I would have to look back under the old code.
The fine is actually quite soft, like I said it is close to 50m dollars in duty that they did not have to pay under the tax breaks now being repaid because they broke the agreement and just 12m effectively in a fine which is light - all things considered.
The question is, with all those tax breaks already under your belt, why take the chance? Just continue as per the submission.
Bridgedog, so in conclusion would you tell anyone investing in a country with any connection to the Wagner group that they are stupid should not invest and if they hold shares there cash them in at once? Just for clarity?
No answer Bridgedog?
Because your investment is in a country with Wagner connections too - so better sell up.
I dont believe it is, I didn't call anyone stupid or encourage anyone to sell up. Just pointing out the realities on the ground. Is that not allowed?
Bridgedog, no police here.
Just pointing out one of your investments has similar, possibly even closer ties to Wagner group.
It definitely does as one regular poster here made the same error.
Never checked all of your investments, there could be more.
But if you want to be a xxxx about it - if Leo Lithium's 40% of 211mt @ 1.5% Li20 is worth $342.7m how much is KOD's 49% of 31mt @1.1% Li2O worth? I'll give you a clue - its less than the current £87m mcap. And will the Mali gov now be taking 30%? So on reflection, yes my suggestion is to sell.
A PREM disrupter on the board.
Bridgedog, your shares have mainly taken large dives today.
I would work on your own maths and your own research a little before suggesting what others should or should not do.
You could write to Hainan and explain the error of their arithmetic if you are convinced the figures are incorrect.
Plus I would be interested to know how you calculated the total of all of our Goldfields.
And in a few weeks soon to be over 50mt bridgenob
Erm based on the 65m sale for 5% previous to that, ~$300m?
I’m surprised Kod holders can’t accept that what has happened to Leo is not a positive development for miners in Mali.