RE: NPV adjustment27 Aug 2018 12:47
Hi Sidneysideline,
From a timing point of view, the AGM is (a) just over a week away and (b) one day post FOCAC, where we all hope to hear good things but for which there is neither detail nor confirmation.
We also await the crucial IMF input, esp. as regards debt relief (where both the Chinese and GLEN are factors).
Apart from these logistical issues, there remain a lot of 'known unknowns' aka assumptions re timing and costings of both outputs and inputs. No serious auditor would endorse an NPV presentation at this stage without inserting so many caveats and risk warnings as to make it of very little value. They're certainly not going to give you any meaningful comfort eg a warranty for their endorsement.
And then, what would the purpose be ? The company doesn't have to provide 'additional confidence' to existing shareholders, why should it ? - unless it wants more money (from them or the market) by way of a fund-raising. An increase in share price is very nice for shareholders , but doesn't actually change things that much : as things stand, ZIOC can't fund its share of ZIOP to the next stage.
When it shows how it intends to do that, things will be much clearer and there'll be more weight attached to an NPV update.
At the right time, the 'story' will - or should - sell itself … and I expect we'll be snapped up by an industry insider who'll actually be ready to put their money where their ( much more informed than Deloitte's) mouth is...
I'll be interested to hear others' views and thanks for raising the question.
ATB
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