RE: Auction update18 May 2024 16:45
Gallmat, no offence but you don't half confuse me. Let's look at the facts of those two companies vs PAT
Both Equatorial & Montero are funding the cases themselves, i.e. no litigation funder thinks the risk reward is suitable enough to provide non recourse financing. That is a major red flag to me; nobody has done independent due diligence with all of the facts so you have to take what the company tells you at face value. LCM have funded GreenX, Indiana Resources & PAT in the last 3 years, if either Montero, but especially Equatorial (as it's Aussie), had been attractive I can't see why they wouldn't have funded them.
Montero's claim is for CAD$90m, which is just over £50m. . Indiana also have a dispute with Tanzania and won their case 10 months ago, they are still in dispute over payment and are valued at just 25% of the award amount right now. Consequently, Montero at a CAD9m market cap is hugely unattractive to me. They could win their case in 2 years and the market might double their share price. They also just raised CAD800k, have no cash and have multiple ongoing projects in Chile. So to me they have little upside potential, inevitable dilution and no independent verification.
Equatorial have filed a large claim, but again don't have funding, so the risk vs reward is immediately less attractive. There is a further problem of collecting the award if you don't have litigation backing. They spent A$1.5m on the Congo case in Q1, so whilst they have a decent cash balance of A$14m right now, the market will soon price in significant dilution to a A$19m cap. Time wise they are still years away from anything.
PAT is unique in the sense that it has significant litigation funding which wouldn't have been won if their case was weak. In the eyes of the lawyers, it's worth risking a lot of money on. The timeline is what it is, the upside potential more than makes up for any minor delays. And we obviously know why they didn't file in Q1...
You appear to be complaining about having your money tied up, yet at the same time are investing in two other cases where there are no obvious catalysts. It's really quite bizarre.
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