So, it's fair for CATH to pay $10million per % for 24%, but not...

First 583 Last

Share
Profile

Follow
Xerof

1,766 Posts.

871

14/05/22

12:01

Post #: 61406837
Share

Originally posted by big2ben: ↑

A lot of posters seem to be very against the 51% scenario after CATH deal.
However, I have views of the opposite.
51% outcome is not bad at all, considering a quicker development cycle and lower capital expenditures (Zijin needs to contribute).
In addition, 51% NPV can support at least 10billion MC.
==================
If not, however, there might be other contingent liabilities, timing issues and opportunity costs that we may have ignored.
At least two issues need to be taken into consideration.
==================
African rumors claim that Zijin’s 33M USD is corrupt, based on the speculation that the fair value of such deals should be 110M USD or more.
In fact, I hate this rumor, not because of the corruption claim against Zijin, but because of the claim of the fair value.
1. Does this mean, even if we win legal proceedings, we have to pay 110M+ USD to acquire that 15%?
That is gonna be a lot of cash outflows I have to say.
Can we afford that, given our cash balance?
In 2021, the ANN states that part of the capital raising (75M AUD) will be used for negotiating that 15% and early work, but it seems to be not enough.
2. If such legal issue is pending and pending and CATH money is delayed again, when can we see our final products?
====================
I invest in AVZ because I want to make a profit; that’s it. However, the African rumors might also increase our costs and put us in a dilemma as well.
This is because if we want to show that we are clean and prove that Zijin is corrupt, we have to bear 110M USD costs.
Is this price really ideal? Let alone timing issues and other opportunity costs.

Expand

So, it's fair for CATH to pay $10million per % for 24%, but not fair for AVZ to pay the same level for the final 15% (in other forms than cash I believe)

AVZ Price at posting: 78.0¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

Reply

Top Stories

ARD

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

MOV

MOVE Logistics picks new interim CEO to take over operations from early September

Emerald & Azure score Digger & Dealer awards

AWJ

Auric banks $6.3M in August with processing on-target for 300K in 2024

VTM

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

G88

Golden Mile ditches Marble Bar and Murchison tenements after weak fieldwork results

Appliances and furnishings impress - will Harvey Norman be next?

WNX

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Bitcoin: Current State of Play & Where to Next | Swyftx

M2R

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

There are more pages in this discussion • 194 more messages in this thread...

First 583 Last

Add AVZ (ASX) to my watchlist

So, it's fair for CATH to pay $10million per % for 24%, but not...

Top Stories

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

MOVE Logistics picks new interim CEO to take over operations from early September

Emerald & Azure score Digger & Dealer awards

Auric banks $6.3M in August with processing on-target for 300K in 2024

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Golden Mile ditches Marble Bar and Murchison tenements after weak fieldwork results

Appliances and furnishings impress - will Harvey Norman be next?

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Bitcoin: Current State of Play & Where to Next | Swyftx

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

Featured News