RE: Rowka / Monty £3.50 FSP7 Feb 2021 11:05
I have to agree Beast, makes no sense to go for a JV at this stage. Especially when the company already had an offer from Sinosteel about 1.5 years ago.
Only way out is sale.
The reason the BoD chose the sale route is because they must have had indications from buyers that it was an option. That's how it works in real life, you put feelers out and when they're turn strong enough by serious candidates than that route becomes an option.
If for whatever reason that doesn't play out well you return to your best alternative, which is the Sinosteel deal, but not a year into the FSP. If that would be the case it would have happened in the first months of the FSP. Indicative value discussions happen very early on. The non binding offers are just a step to the binding ones. Have a look at the DLA PIPER term sheet scheduled. Bog standard and logic progress.
As for the +40p group, have another look at the ACF valuation report I posted yesterday. 60p on just WK, which was a year ago, before DFS AND serious increase in metals prices AND license expansion.
No chance this will go for less than the ACF valuation with a serious mark up.
As for the zero value on MT, no chance either. There has been drilling done before and several companies know the area very, very good. So, although a lot of extra work is still needed, there will be a value on MT. A serious one as well. It will be a serious discount to the potential total value, sure, but a serious value non the less.
Have a good think about the above. It's the only way this is going to play out, regardless of what we as PI want to happen. The signs are all there.
MS
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