If Anglo/ ARM refuse to settle these negotiations on Modikwa there could be major consequence.
The deal as I understand it is ARM/ Anglo have been offered Hoepakrantz by NKWE/ DMR which has synergies to their current platinum mine "modikwa," it makes sense that this is the farm to trade as it is financially a better option for ARM/ Anglo JV. This farm is suggested to have an NPV close to a 800 million dollars.
"The Risk" If ARM/ Anglo pursue legal action two things can happen-
1. Run the risk of losing in the courts and therefore losing Hoepakrantz.
2. You piss off the DMR........ that can't be a good thing.
NKP Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held