CAW1 and ahjh11117 Feb 2021 17:57
Caw1 - agreed, and that is the point.
There has been a lot of discussion on this BB regarding the success fee arrangement and whether or not the banks are racking up huge fees as each day goes by.
I have shared the video and asked the question of ahjh111 on 2 separate occasions but thus far not had a response, maybe he/she has not seen my replies in order that they could respond. I also apologise to those who feel I may be going over old ground but I think this is important.
I appreciate that it only mentions the success fee bit in the RNS but in the interview with Proactive, DS is quite clear:
"People need to assess on their own the probabilities, they can just see what is coming in the public domain from our side and from the size of the banks involved and the fact they are operating on a success fee basis, so definitely they are assessing the probabilities themselves when they are making a decision to work without a retainer on a success fee. They are the arguments which are suitable to mention without going into something I cannot say as a Director."
Now, it is abundantly clear that DS is acutely aware of what he can and cannot say, he is very bright and he is very eloquent in a language that is not his own, it is also evident he is being very careful throughout the interview, he knows his position and he knows the rules.
I believe it is also clear that DS will know better than anyone else what the arrangements with the banks are, he most likely determined those arrangements and signed off the agreement, so why would he say that if it were not true, he didn't need to say it, he didn't fall into saying it, he was making a deliberate and carefully thought out point. Listen for yourselves. (27mins 30 secs in).
https://www.proactiveinvestors.co.uk/companies/news/905934/eurasia-mining-s-dmitry-suschov-discusses--strategic-options--for-its-mining-assets-905934.html
So, success fee basis without a retainer it is, the only real question is what exactly does that mean, to me it means they earn a lot of money if the deal goes ahead, a % of the price agreed, they are taking a calculated risk, but it also means they get nothing if there is no deal, they are not getting paid just to be involved, ie no retainer.
Happy to be corrected if more knowledgeable investors have a better understanding, but I kind of hope this puts to bed the posters on here who consistently try and tell us that UBS and CITIC are 'here for the ride' and will be getting paid whatever happens, that is not what DS has said.
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