Indeed - Avebury was the most "compelling" acquisition that...

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eastwest101

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03/10/23

16:03

Post #: 70151042
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Originally posted by Roubi: ↑

Joca,
I tend to agree with you, we'll likely get nothing.

But I am not sure whether the 5c valuation represents the value of the mine or the desperation & incompetence of management.

From memory, Averbery was bought for ~$100M and according to jl, this was a "compelling acquisition" or some words like that, implying that he got a good deal after supposedly hundreds of projects assessed through tough due diligence processes.

They also have put over a year of works into it, with all of management impressed with progress announcements after announcements.

So now worth...? $120M? $150M? More? Given the above that would be a bare minimum for the sale of the mine right?

Assuming $120M sale, and owing ~$50M to Hartree, that's $70M left for other SH. Not sure how much of the Hartree loan was through shares? Assuming they have 100M shares, we are left with $70M / 400M shares = 17c per share for regular holders?

Very rough numbers, very optimistic outcome, but there might be some left for us?

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Indeed - Avebury was the most "compelling" acquisition that management could find during their 18 month paid holiday during Covid, apparently they scoured the world's datarooms for the best projects and then chose a project literally in John Lambs backyard. Sure the coup in Myanmar and the capital controls/sanctions was beyond their control, and I don't begrudge them that, but everything after the Avebury acquisition from the failed relisting and capital raises, and the Avebury restart and Hartree deal is on them.

If they wanted to run their own private company then they should have been up-front with MYL shareholders, and given them an exit option after the coup in Myanmar.

MYL Price at posting: 70.0¢ Sentiment: None Disclosure: Not Held
22 Upvote

0 Great analysis

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