re: Ann: Completion of Due Diligence and Noti...
Ok adlaw, I'll bite. If it's all so clear and fair why is Jedi Resources hiding behind a BVI incorporation ? Whose identity needed protection here ?
And let's not forget it is KRL shareholders making this payment NOT Bayan. Is there some suggestion that the deal is so good for us and so bad for Bayan that someone had to drag Bayan kicking and screaming to the negotiating table to get this done ? Or how about you justify me a payment of $50million dollars for this? Can I peruse the invoice 'cause they must have had one hell of an expense account. Fifty MILLION dollars !!! I mean what charge rate are these guys using, 1/2 a million per hour ???
Seriously if that response appeased you then you're easily satisfied.
In my opinion Pakar is not worth $277million. It's barely worth the price without the $50million back hander. And the IER did nothing to change my opinion here as I've stated previously. KRL's value proposition lay in Kubah Indah, in coking coal. Suddenly that's off the table and instead we've lost 2/3 of the company for some low rate coal that even at high turnover will outlast the planets interest in coal. Seriously, how long would we have to mine Pakar for to get our 3billion tonnes worth ? At a massive 30Mtpa (which will never happen) there's over a 100 years worth. If there is demand for siginificant amounts of low grade coal outside the next 30 years I'll be very surprised. In fact as the IER says there isn't even a market for South Pakar coal today. Over 2.5 billion tonnes of this asset HAS NO CURRENT MARKET. And of course in all the hoopla surrounding this deal KI has all but been forgotten.
The IER jumped through hoops trying to put a positive spin on this deal and still struggles to leave me impressed. I want Bayan involved because we have no future without their input. It's just a shame we couldn't get a cleaner deal without mega-mystery payments and crappy coal concessions that had failed under previous projects.
KRL Price at posting:
14.5¢ Sentiment: None Disclosure: Held
