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Huge news this is.
Firstly, huge thanks to Mark for a great achievement, hard work and perseverance.
Quick read through as in a rush. Market value of compensation will be in the order of $2 Billion in my view.
Very sad day for the Indian government and will be talked about all over the world in the industry.
Faskens are very very confident about this for a successful outcome.
Industry experts to advise.
A massive rerate to come here in the share price.
Catch up soon Mark.
The bilateral agreement is crystal clear and the compensation clause is drafted for this very reason
Kitrash
I disagree with you. MB has all along said that he would try and reach an amicable agreement with the govt - this seems the likely reason for holding back of the case to the tribunal. Once the case is lodged then there is no turning back for the govt. When an award is made at the tribunal, the govt cannot run away from their obligation to pay - you have govt assets around the world which could be seized.
All looking very good indeed. I wonder if the delay is actually caused by the JV Side of things as this can sometimes cause a lot of delay - remember this has to be announced at the same time as any agreement with the Govt.
It will come, just need patience
Good luck to everyone. Much needed rerate coming soon.
Indeed, can't wait for MB to fire shots
Mickey, POSSIBLE 40p for a starter if Cascades comes out at over 1M ounces
DC66
This ties in nicely with what MB said - add two zeros to the share price on a deal achieved- I believe he said it when the share price was 10p or 12p
GLA
Since we have been messed around for over 10 years or so, MB has had enough and has made an excellent move - forcing the govt of Rajasthan to enter into an amicable agreement OR face the damage, both financial and more significantly reputational. My money is firmly on the former.
As per MB, potential JV is to be announced in tandem with any agreement reached with the govt - at which point can you imagine the scramble for shares!!!!!
Indication of a deal with the govt became evident when the funding agreement was being amended
Somehow, I feel we would want to maintain control 50.1% so that the JV partner can progress unhindered.
Is the delay due to the possible partnership agreement holding everything up?
Talking and giving the govt more time
If not then a sign they are talking
Big RNS in the next minute?
GLA
I am sure we want to retain control. i.e. more than 50% as otherwise the other party can just sit on this land and do nothing.
MB is a Corporate Finance guy so he will be working hard to find a solution if they do want a 51% share
THE 51% COULD BE THE STICKING POINT IN MY VIEW WHICH IS WHAT THIS HOLD UP COULD BE
BELOW IS THE EXTRACT FROM THE JUDGEMENT ON 16 AUGUST 2012 WHICH CLEARLY INDICATES THAT THEY WANT AT LEAST 51% SHARE IN THE COMPANY
"The said order went on to state that, RSMML could, however, enter into a joint venture with a private investor, subject to RSMML having a minimum of 51% share in such a joint venture. A further condition was put that, at least 20% of the profits from the mining in the notified scheduled tribal areas would be spent for welfare of the local tribals, and that, the said amount would be in addition to dead rent and royalty. Conditions pertaining to engagement of persons from the area to the extent of 50%, was also inserted in the said order".
GOOD LUCK ALL