RE: MOD/ANN18 Jul 2018 03:11
Well that's the silver bullet isn't it - convert what we've currently got in the ground into a multiplied equity stake then drop killer explo news throughout the rest of H2 to, quite possibly, multiply the value of that newly multiplied stake for the big win-win.
I believe that very MO is on page one of the MTR Playbook - it's how you 60x your mcap in four years ;)
Ultimately, what counts now, more so than ever, is the MOD SP/mcap going up because that increase is going straight onto our balance sheet the very same day it happens so we've got less of the "we know it's worth xyz but it can't be reflected in the MTR SP until it's on the balance sheet" scenario and you've gotta welcome that as a shareholder here.
MOD SP up a bit on first reaction but yes, it's very early days but I would imagine that the market, once they get over the fact that we appear to have got a killer deal here, will accept that it's in the best interests of everyone and allows MOD to control how things play out from here with respect to future deals and we're protected on future conversion valuations by going with an average broker price.
This was part of the value opportunity thesis of course - we knew all along that at some point someone, somewhere was going to have to clear us out of at least part of the JV to allow a given chunk to progress to DFS/production, it simply had to happen and here's the *first* example of it.
Yes the deal is clearly very good for MTR but remember we wrote the very first cheque here. Without our initial money then maybe there's no MOD/Botswana/60mt copper eh so, frankly, we deserve a bit of a mate's rate deal - if it didn't work that way then nobody would ever get funded in this business because cash is always king and the day you don't pay it forward in that respect is the day that future offers of funding suddenly start drying up ........
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