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28/10/20
20:17
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Here is IDC's reason for leaving us high and dry...False commitment form IDC is disappointing though. We gave them a cracking deal in the 10% of Ledjadja for only $100M (and that was all debt). They also got royalties. What they had was a cracking deal, so it's disappointing we gave them so much and in return they let us down at this stage. That makes this quite a lucrative opportunity for another funder, PIC or Noble. https://www.reuters.com/article/idc-results/s-africas-industrial-development-corp-to-diversify-equities-investment-after-sharp-losses-ceo-idUKL8N2HH4M2
Originally posted by Foxben:
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I'm trying to process all this so I'd appreciate people's inputs. below are my thoughts on what could happen from here. 1. everyone stops, noble takes security over the mine. shareholders lose everything. I don't think this is the first course of action as selling the mine would take a long time and they may not recover their debts doing this. I think this would be their last preference 2. they decide to look for a third funder and the saga starts again. to do this, noble has to bankroll the working capital again and they seem reluctant to do this at the moment 3. noble and pic negotiate together to chip in the 100million that IDC we're providing. this simplifies the lending process. I'm not complicit over the full history but was under the impression they wanted a third funder to dilute the power that noble has. I'm sure most shareholders would vote for noble to have power if it means their shares are worth something these are the only 3 options I can think of that could happen from here. I'd love to hear thoughts from people wiser than me I do hope we didn't all get screwed
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Fox, I think you are quite right with your suggestions above; and or slight variations of the above. I think everything will be back on the table now, depending on short term cashflow?