My calculations are based the following assumptions:
1. MLL shares increase from 317M (pre-Morilla) to 450M at the LLL IPO stage of development 2. An IPO equivalent raise = 12% of the total shares as per LLL listing, raising $100M, increasing MLL shares to 511M. (LLL initial share distribution = 843M to FFX shareholders, 210M to FFX Ltd, 141M IPO. IPO =12%). 3. An equivalent pre-Ganfeng placement market cap of $868M with MLL SP $1.70 at time of raise. 4. Raise $106M at $1.81 (6.5% premium). Add 59M shares. Total MLL shares 570M 5. Current market cap $1619M, Total shares MLL 570M = $2.84
Perhaps the MLL shares on issue creep up to 600M, this drops the current SP to $2.25 using the same methodology.
The Morilla deal was bad for BGS/MLL shareholders. I personally do not accept the Company needed the goldmine to help them attract a partner. A partner for the hottest commodity of the last decade when you have one of the best resources globally? Perhaps the company needed a better board rather than an inferior/beyond expiry date goldmine? Ganfeng are a superb partner but I think they got a very good deal. Millions were wasted on Morilla, millions were wasted on fees associated with the demerger, advisors and brokers made millions raising cash which has been given away to ????? in Africa. Executives have been paid well and been given sizeable termination payments (for F ing up the job they were paid well to do).
Little wonder more than a few long term holders feel short changed even when the LLL share price is doing well.
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