Recap Tax issues13 Mar 2019 15:02
Hi Mark, up the Palace -shame about Brighton but we may still be able to afford Cup Final tickets -yet!
I believe from memory the Usd300m was an offer/discussion with Barrick to settle all old tax disputes with the G.O.T. as good faith. No doubt in my mind an Insurance related transaction from a Political risk insurer. Those type of commercial vertical programs quite often had a Usd300m primary limit, followed by xs Policies -interestingly enough. So if Acacia or their Insurers agree it might not actually cost us anything? However the deal needs to be agreed by Acacia and so we can only assume in the absence of any announcement this is all going on as we speak.
The Barrick Deal refers to amounts amounting to a 50/50 split in profits, however again Acacia need to consider if this is generous enough to drop their International Arbitration claim, again something their own lawyers and Insurers will be talking about. This could be why we have a delay. Insurers always take a month or maybe 2. Interestingly we might have Insurance coverage here on both Barricks and Acacia Policies. As any Company has a wide description of coverage i.e. The Holding Company, Associates, Subsidiaries, Sub contractors. Partners, etc,etc. By the way the loss at N.Mala will also be covered under contract worked for theft, and damage caused as a result. As I have said before if I was a shorter I would be very worried at this stage as Acacia has more upside than down. They can hold the price down for a while but as they say in the US Shale Market when she blows she blows. I am in to CEY for various reasons and will stay with them. I can talk about that later as I have said to BB. Best of Luck
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