LOM commits all the money into SML, and it gets paid back as a capital loan repayment - supposed to be as a priority vs dividend I thought.
That is what the unpaid $14m AUD is for - it is a Repayment of LOM's loan into the JV, back to LOM... The loan is an asset on LOM's balance sheet (face value of $26.4m USD discounted to $22m USD at 31 Dec 2021) LOM should have whack a 15% IR on that bad boy, that'll get them paying it a bit quicker when the funds are available.
Should have had the capital paid before the dividend (i.e. no capital loan, no dividend back to the Government).
There is some politics at play here, I reckon Angola wanted an ongoing commitment for Kimbo exploration before they send the cash? Wouldnt put it past them... And we have gone okay, we will reinvest 50% of what you send to AUS?
Not necessarily fair for LOM, but Angola just looking out for its interests too..
For those out there that don't read the notes to the annual report..
Significant accounting judgements, estimates and assumptions Financial assets The Group’s financial assets include the receivable in respect of associate, SML, that represents the future reimbursement in US dollars of the Group’s historic alluvial exploration and development costs incurred at Lulo. The recoverable amount of the receivable is reassessed using calculations which incorporate various key assumptions as per above.
LOM Price at posting:
7.8¢ Sentiment: Buy Disclosure: Held
