Royalty deal19 Feb 2019 22:15
Been thinking about this deal whereby the shareholders supposedly benefit from a long term income from the Kabwe site at some unspecified point in the future.
I wonder if at some point Borrelli actually sat down and used his accountant's brain to plot out, taking into account all the variables and costs, how much of the project he could get away with selling, and still retaining something worth having. Also something which one could put some sort of a value to. In this regard Vig used to bang on about how we shouldn't worry because the Kabwe site was worth a couple of billion and we still have 12.5% of it.
But we've never ever been shown any sort of income projections which might have given LTHs some crumb of comfort. For all we know, by the time we get to the stage when royalty payments become due, there could be massive debts, directors' share warrants, 2 billion shares in issue. Who knows? Indeed could it turn out to be another O2 arena where the government starts to get a share of profits after the new owners are completely in profit. So easy to manipulate things in such a way that costs continue to swallow up profits.
Bozzer, I'm assuming you are reading this so would it be too much to ask that for once in your life you start levelling with us? Or would that be too much for the owners of the business to expect?