They have credibility, WInsome proves that. The current sp is really just reflecting the doubt as to what sort of deal MTC can elicit over the next couple of months.
I'd prefer a sale of the project and royalty in full with the company retaining 15% and returning the balance (less costs and taxes) to shareholders. But the company has left the door open of a potential jv to develop Sturec. This is why imo the sp is not reflecting the possible return to holders.
Until a binding deal has been announced, the sp will be subdued as there is still a risk of no deal at all. I believe all Chinese companies will work together to achieve the cheapest outcome for China. They are the frontrunners to get the project imo, especially with Slovakia moving closer to Russia.
I have applied for some shares in the spp but am generally not interested in increasing my holding without a binding agreement in place as there is still risk here, hence the potentially large arbitrage here. I certainly wouldn't call it a credibility issue as much as the still strong possibility of no adequate binding deal being struck.
Just my opinion
MTC Price at posting:
24.0¢ Sentiment: None Disclosure: Held
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