Member Info for Gallmat

If you follow my logic.

It would make sense to ultimately settle for 300m usd even if you think you might be right.

Sell for 800

Interest 200

Setlle in 5 years for 300.

Net gain 700m

When you get close to end. I would settle because you still made alot of money. You say you retained strategic asset and you get good headline for good business sense

This is going to arbitration.

Why would they do a high profile politically embarrasing back down. Better to continue and say some foreign tribunal got it wrong. Bias vs india etc!

A settlement will also come at end. Lets say you sell for 800m. And want to pitch giving us 300m.

When would you make offer.

Today? No

Invest 800m at 5pct. And make 40m usd a year in interest. After 5 years you make 200m usd ( free).

Then offer us 300m usd and we accept.

Only cost you 100m!

I decided to purchase 4k of shares.

Nothing huge happening. Just illiquid.

I was looking at greatland gold. Similar reserve and grade. But underground mining with huge overburden.

Trading at 350m gbp. I could imagine a nice valuation on this given we are open pit.

My conclusion is indian gov is clever.

Costs them nothing to take the asset. Sell for 700m usd.

The spend 14m on litigation. Worst case pay out what you have in. Beat case nothing or settle for a fraction.

Your mates/ india get a strategic asset.

Good reason to take the asset even if it breaks international law.

No cost to india at all

Just wanted to thank the board.

Very helpful.

Well researched.

Not many like it on lse.

Nice to meet you all!

Agree. People however like easy answers. If india sells it for x, they may take that as it is an actual market transaction. Anything else is an estimate.

They could argue it was not fully open to the whole market so underestimate etc.

If there was no sale then it would be much easier to set what u want

Lit.l are good at what they do.

Ceo is out of office for nearly 2 weeks so i cannot get my answers.

This is an interesting stock. Just not sure on a few items.

I emailed ceo to see how responsive he is. I do this with all companies to see how they are in person.

I will let you know if he responds to email or even will have a chat with me.

I think 1% chance they hand asset back.

Clearly they know about litigation, they do not care and are publicly advertising in papers the great sale.

I took position on friday but holding at that.

It took 1yr for lcm to agree and in 2 stages of due dilligence. I like lcm alot, following for yrs. But still a bit strange for 2 stages. I follow alot of their cases.

I think the valuation will be quite high just not sure where it will land.

I spent alot if time thinking about it.

I think i will hold off a bit until i research a bit more.

The gov seems to have no fear regarding the litigation. Also if they lowball sell the asset the huge expected number might not come out.

A few too many unknowns for me to go bigger

The only advantage is that the profits after tax might be retained by people who are local. Whereas for greenx it goes to shareholders

The taxes on profits would still be paid to them no.matter who runs the mine

Has to be b).

You would not make a big fuss about selling huge asset to the then back down.

Still worried about corporate strategy. Best thing.

Give everyone 1 yr salary now upfront and hybernate. Then offer staff payment worth 15yrs salary if case wins.

Minimise dilution. Let staff have a lottery ticket and let them work elsewhere in interim.

Seems too simple. But really this would be a winner for all. Raising up to 10pct of company for operations could end up costing 50m. Dont do it give them 5m lottery ticket. Hybernate. Sell what we have and buy back stock.

Onw questions. How can the auction proceed if we start an arbitration?.

If the gov can sell the asset even with arbitration outstanding they have nothing to loose.

Sell it for x. If loose case pay x. If win case they make money.

Worst case flattish...but their mates get a great asset

I took a small stake on friday.

So it moved. Nothing really going on.

I expect it to drift back

Almost funny.

If they are stating this in the prospectus for asset, hard for them to deny this is the actual resource.

Because they use it as basis for a sale.

Do we know what it sold for? Because if low balled they could argue that is the market value ( what someone paid)

Really.

I kind of like the litigation seems safer (depending upon your strategy)

That worries me a little.

One last ? If i can.

Do management plan to basically sit on their bum for 4 yrs? Because that is what i want!

Not silly raises of 3 or 4m gbp for drilling these

small projects!

Thanks.

Been through pain with junior minors, small valuations for mining projects are not worth much in my experience. They hit fundraising and technical issues all the time

I only see a litigation angle here. The chance of a payout where a lawyer matters rather than mining management - often they execute badly

Thanks for the broker note.

Any take on when the valuation announcement is due?