Did anyone see the amount of cash that would be paid to DML from the new JV arrangement and the dilution of their holding. I can't see anything. What I can see is BCL carrying the can on the licence conversion.
What will be the cost that BCL will be incurring to achieve the mining licence.
I do not see any real added value that may arise for DML until the conversion to mining licence. Given the:
- the current resources; and
- the original earn in from 2009 valued the project at $5 million.
The uplift in share price of DML is a 100% equivalent appreciation in value of the project of $24.5 million. That is, DML' share price has increased by 0.6 cent represents a value of $3.3 million and at a carry of 13.7% this is equivalent to recognition of crystalisation of value appreciation of $24.5 million.
Sorry to say but IMO this shareholders creating a bit of share price action off the back of some news to achieve an exit. I don't see this lasting long.
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