Ann: Government of Mali - Update, page-276

Not forgetting LLL’s loss of control. Leo is now a minority partner in the JV, despite us effectively having supplied the permitted resource! Leo shareholders seem to be glossing over this as if it’s merely a change in how GF’s investment was structured. Their previously intended 9.99% holding in Leo at least put them on the same page as other Leo shareholders, with an aligned interest in LLL’s longevity.

I actually don’t give a hoot what the $$ calc/valuation is here for the new direct investment into the JV, and what this values the project at today, because it is the share of profit down the track - and maintenance of the balance of power in the JV - that concerns me the most. Leo is now in the hands almost completely of Ganfeng and the Mali Govt, who together can outvote Leo - and will have no hesitation in doing so if it benefits their own stakeholders. People seem to be blithely still applying an Australian way of doing business - and an Australian mindset - to a Chinese partner in an African asset. I think the new 5% handover is absolutely awful.