What if all this actually achieves one thing - A lowering of expectations so that a buyer will easily get the asset. I remember when the options sold for about 6 times the current price of the ordinaries - may have even gone higher. The Ords have been many multiples higher.
The problem is that it is not about what it is worth it is about a default sale. I am not sure that outside of a JV partner or someone acquiring the whole project that there is an appetite for $3million right now. Then there is the BEE requirement which I always banked on G being and fulfilling , and then there is the shares that G may have to hand back.
We also have no idea how much G owes in other areas or what their balance sheet is like. I found it strange that you would have given 300 million shares to cover $3million debt. That is placing a valuation of 1 c per share. If they carried on selling into the market how long before they would hit 1 c.
Too much uncertainty IMO - unless the JV partner looks on and says yes lets do the deal and takes out the G paper as well.If this hangs around for long I guess it will just destroy the value that is left.
I wonder how much you would have to offer to buy the whole project, is it 10c a share or 15c or maybe 30c or you can just stand by and watch. certainly my shares are for sale at or about 30c - this is too much stress for my small little investment in this company. I was very cautious and sold a lot at a profit so not very much at risk and yet I get angry at what is happening.
NKP Price at posting:
4.8¢ Sentiment: None Disclosure: Held
