Dilution consequences26 Dec 2025 15:42
From ADVFN
“ Losing track here with all the usual twists and turns
Is this the position from LSE?
“say the mine is currently generating $50m pa, VAST receive 49% of that, circa $25m, based on today's commodity prices.
Let us assume the AISC (production cost) is $1850oz for gold, equates to $10m on VAST's 49% share, production cost of silver (usually a by product) £1m, total cost of production (VAST's share) $11m
Based on the above the mine would generate an annual profit on VAST's 49% share of $14m or around £11m
Mug punter 20% = £2.2m
Present value £6.5m
Of course unlike now, 20% mug punter will have no control over where 51% and 80% decide to spend any income. Maybe they decide not to declare dividends for 5 years
All reminiscent of mug punter position with gold mine in Zimbabwe where mug punter had no control over allocation of revenue”