My response being are you familiar with the UDP (Dubai Agreement) or the IA (Investment Agreement) and GoMs current position on either abolishing or renegotiating these ??
These are worth multi billion dollars and involve some of the biggest investors and over a dozen global banks.
What makes you think a small insignificant agreement with Matad cannot be either rescinded or completely renegotiated ??
I don’t think another Sovereign government will wish to become involved. Therefore I fail to understand your argument as there is already a clear precedent in place Mongolia will review agreements if they do wish too.
I believe this would be a great opportunity for the BoD to make a clear statement that there have been no compliance or governance issues related to obtaining the EL, and to give an indication around when they expect to receive the EL.
At the moment, the how long is a piece of string strategy is wearing thin, and misleading. If there is a problem shareholders legally have a right to be informed.
However I don’t believe this is the Mongolian government or MRPAM being slow or obstructive. I believe this may come down to a conflict between Petrovis and the President of Mongolia. There is significant history between the parties going back many years. Only recently our chair ladies father was put in prison for alleged offensives.
I therefore believe Matad to be in a difficult situation. The BoD has probably done all they can. They are probably as frustrated as much as any investor here. However my belief is the BoD will know exactly why the EL has taken so long and it’s not because Matad have not followed due process and procedures.
What Matad has to do is come clean. The BoD will know the exact reasons why the EL continues to be with held. My view is the BoD is misleading shareholders, and that amounts to wrong doing. Ultimately if investigated that is securities fraud, which if investigated by either the SFO or the FCA may lead to further action.
It’s time for the board to come clean. It’s time for some further reasons to be presented to Matad shareholders or else I believe the UK regulators become involved. This is a UK listed company which should meet international compliance and governance standards.
I think if you and Persistent believe in the current Matad strategy Ojay which has failed miserably, and believe Manroe to be off point with his own thinking, I know who currently looks the more credible??
RE: Costly white elephant in middle of nowhere23 Jan 2021 18:21
Been a while since I looked in.
Same people, same positions, same arguments.
Since Q3 last year Mongolian politics has been a difficult landscape to understand even for the more familiar. With last weeks events which were forecast for sometime it does leave Matad a little exposed to delays.
I do have some sympathy for Matad as this is complexed. However with the appointment of a new cabinet next week Matad need to quickly forge new relationships with the ministers appointed. If they waste time I expect no action this year.
This year is about being proactive, being in UB, being visible and getting down in the weeds. If Mike does not have the stomach for that I would suggest he resigns and Matad bring in a new guy.
Time is critical, the deliverables need a new focus, and unless Matad can put some real horse power behind that I expect 2021 to be another write off.