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Aha yes here we go. Great news. At last this will go in front of a court. I imagine judgment won't arrive till around the election at the earliest. If this conwoman Ribera and the rest of the clowns get booted out a new government should permit anyway. Or if God forbid Ribera comes back she'll have to commit public funds to appeal any judgement in BKY's favour. That could be tricky even for a brass necked idiot, time could be up for her quite soon.
The GBE MDA terms are informative for MKA and there's some read across. MKA's project is also unique of course so the shape of our MDA could be very different.
MKA is still a stonking buy imo. The broad mine refine recycle business, demand for REs without Chinese involvement, and our other assets etc etc.
The GBE MDA terms per se seem reasonable. A 5% (tiny .45% local) royalty (even gross) reflects the benefits of a stable political and tax regime (the latter written in to the MDA for 10 years). If the starting point is say 0 to 15% it's fair. 10% state golden share fits well too and the 10% fully contributary option is on balance positive for future funding.
Why the tanking SPs? Presumably the wider risk off approach of the market to growth stocks like these, credit crunch concerns for funding GBE/Songwe and geopolitical concerns with Malawi's difficult recent history etc etc.
Wtfdik and all IMHO of course but definitely a buy at these bucket shop levels and gla.
Is 10% equity and 5% royalty really that "awful" GLR?
Seems to compare reasonably with other regimes in Africa and worldwide. And particularly given where Malawi are, what they've said to date and the historic problems with Paladin. There's some decent tax breaks and fx account provisions to satisfy lenders in there too.
Wtfdik too but on the face of it a 10% golden share (with option to buy another 10%) and 5% royalty looks fair enough. The fx provisions look fair too. MKA's funding or sale plans may be further advanced too.
The Globe announcement in full...
https://www2.asx.com.au/markets/company/gbe
It'll be interesting to see what the market thinks when Globe gets its MDA. What will its SP do, what will Globe and the market experts and commentators say? Will MKA SP follow? Potentially very exciting times for MKA.
Assuming Globe does get its MDA in short order it will be informative for MKA shareholders to see the terms (and how reasonable they are) particularly as they relate to the crucial points of tax royalties and fx. I presume these will be announced on ASX. It's a very significant and positive development that the MDA seems to have been granted imo, assuming fair terms.
Lots of moving parts in these negotiations. Shareholders and lenders interests included. MKA must make sure they get fair terms. It's not our job alone to solve Malawi's foreign currency crisis for example.
Difficult to guess timeframes to MKA MDA completion. Hopefully not too long though particularly now there's a precedent with Global Metals presumably on fair terms. The same issues seemed to be holding that up.
This share still a strong buy imo. Just a bit more patience needed.
https://mwnation.com/govt-guards-against-exploitation-in-mining/
This article from mid Jan explains the ongoing forex/tax sticking point issues well.
At that point the Globe MDA review was at 90% and MKA review at 70% with both companies understanding Malawi's position.
Lack of fx currency is a big issue in Malawi.
If Globe are now at 100% maybe MKA 's up to 80%?!
Good find crumbs.
There'll always be accusations of corruption flying around given Malawi's past, but Malawi finding and paying for other lawyers might not solve that. If there's corruption, it'll find a way whoever's acting and whoever's paying the bills. Lean on those other lawyers for example. I doubt Malawi will get anything better straighter and cheaper than MKA DWF and Trinity and the current bill paying arrangement though.
The bit I like most in this article is MKA having made a rutile discovery expected to fetch billions...
2 new sets of lawyers have joined the party in the last few months - DWF and Trinity. That means expense and delay, but should also mean licensing and a MDA that sticks. Just a little more patience needed I'd say then hopefully a massive reward.
What's the Advisory Committee actually done I wonder? Substantially strengthened BKY's position and greatly assisted - yes, but how?
My best guess is that DWF and Trinity will have now advised Govt of Malawi, who will in turn now be deciding whether to issue the MDA/ML in current form, or whether to seek further amendment, anything from a few tweaks to a major re-write I guess. The mood music going in to this was so positive from both sides though, you wouldn't think there'll be any points of principle needing changes, so no major delays. Fingers crossed.
When granted it'll be the sort of news that'll likely get announced by the govt or the press ahead of any RNS. Time to accumulate shares.
All imo, just surmising where we might be atm. Gla