Yes, that is how I read it as well. The problem is that math is wrong for stage 3, thus why I say we need clarity. If Zijin make a cash payment of US$35 million to Khuiten for 50% ownership, the implied value of Kharmagtai owned by Khuiten pre-JV is therefore also only worth US$35 million.
Think of it like this, if a $1bil company does a $1bil cap raise causing 50% dilution, you don't then claim the pre-cap raise company must have been worth $2bil because investors paid $1bil for half ...
Sorry if I am not making sense, happy for others to correct or explain better.
All IMO, please DYOR and GLTAH.
XAM Price at posting:
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