Member Info for Gallmat

The company is creating far too much uncertainty.

My guess is some discussions are happening. MB does not want to say anything ( not to cause a price spike) but on balance people are getting hammered.

I will chat tom to him. Any ?s and i will ask

Strange. Waiting for 3 yrs once we start seems fine. Waiting for 2 months before we start process seems painful.

My mind still amazes me.

Ask him. He responds to emails. This is an honeat email not trying to invoke a reaction

No point buying wait for the diacountwd placing

Must be a reason. CEO said it is ready to go so lawyers must be happy to proceed with what we have

I think maybe pro and cons.

Lcm go from 5pct to 15pct at 3yrs i think.

However i would guess our settlement from arbitration would be on post ( after) tax basis..like an NPV

If we settle early i think corporation tax might be due. So save on lcm, loose on tax.

I checked some low grade mines, can have AISC at 1850 aud or 1250 usd. So kalaka could be valuable

Sounds good. Queensland power is probably half way as well.

Check out PAT.L. start of story but looks interesting. Last vsa video with CEO said he did not object to suggestion of claim size of 1.2 billion usd ( vs market cap 15m usd equivalent).

Looks like another greenx!

The final piece of the puzzle might be this is reason for not publishing the valuation. They are not commisioning the required scenario.

If they do settle MB should write a book. I would love to know what happened at each stage. This is his forth arbitration!

I always liked this idea as everyone ends up in good place. 250m usd for 20pct on 16bn of contained is a bargain.

I wanted a stronger company to win as they could fund the 250m easily. However for the winner that might be huge dilution as small cap.

Anyway god knows. My guess was they are waiting to see if the gov and operator can stomach something like this ( but cannot say)

The only way out i see.

Goi gives us 20pct. At same time operator buys that out for cash for 250m usd.

Net gov gets 45pct. 15 pct of royalty explainable by import tax so net more like 30pct.

Operator has percentage they can actually build mine with.

We have cash.

This idea of giving % of royalty is within the new 2023 mining act i think.

Problem for gov, if they settle with us they create case law that others might want to follow. However the idea of giving the people who explored some % of royalty is already in the minds of the gov new policy

That is a dream but seems unrealistic.

Could we really claim the value of the value of royalty GOI get. If it was a sensible say 30 pct then maybe you could :) but the 67pct not sure :(

Anyway weekend coming. Bring it home MB!

Pk/ sheer

Thanks for the thoughts. The high premium does show what a good asset it is so positive.

One interesting thing. I read correctly it seems like 2023 mining act has an idea that explorers get a % of the royalty.

This would sound promising as a negotiation idea that we take a cut of the 65%.

If the winning bid was reasonable you would think this could be a settlement discussion. Part of upfront cash and royalty to us, but i cannot reconcile how this can work

This mighr be a 500oz a year operation.

The gold price could easily rise but also fall and then you are buggered.

The forward curve on gold i believe is not that liquid for long maturities or that steep ( just reflects storage costs and financing).

Also historically as gold price rallied so dis the AISC.

Seems strange. Jewelry makers can import gold bars by paying 15pct levy.

Smuggling is also widespread

They are bonkers if i read it correctly.

We can bring more blocks to auction, by not allowing the people who find the resource to mine it.

But now nobody can be bothered to explore because if you find it you dont get to keep it?

Top 10 gold deposit in the world and i still cannot figure out how the winner makes money.

Or do people bid, then complain it is too high. Pass some envelopes and down the line it reduces to something more sensible.

Are we part of this? They reduce royalty if court case goes away.

Seems like a terrible auction system, they allow high bids and then less mines get actually made !

Nice work sheer.

There is an 15pct import tax which they can avoid probably if they produce domestically

What they get?

Adjustment to gold price * gold price × % we keep.

(1.15)* 2300 *0.35 = 900 ish.

Still seems low. I must be missing something.

https://m.economictimes.com/news/economy/foreign-trade/centre-exempts-gold-import-by-rbi-from-customs-duty-agri-cess/articleshow/108453581.cms

Hard to think what other import related costs you save. Transport?, admin. Gold is high value and not bulk!!

I think the gold price is for processed gold, in bar.

Maybe there are high import costs. Transport i think is low as it is not bulk like iron ore, maybe import tax?

I will.have a look

Yup. Something smells with auction