This is very interesting isn't it ....Very interesting indeed !...

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08/02/24

13:42

Post #: 72304387
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Originally posted by VatreniHR: ↑

There are 12 bidders (8 Chinese, 4 Western). Trans is only the first (western) bidder to play their hand. The real player here is Chifeng Gold from China who are also a substantial holder in MTC.

Chifeng's last acquisition was the Wassa mine (Ghana) in 2021 for $470m USD cash (3.8moz @ 3.8g/t inferred).

The Chinese don't bother with contingencies, they typically structure deals as a lump sump. I'm expecting Chifeng to come in here and bid around $70m USD as a lump sump payment. It might be higher if other bidders are keen on competing.

The main point here is the bidding process is being handled by Minmetals Securities, which is a subsidiary of China Minmetals, the second largest company in China and 58th in the world. Their 2022 revenue was $131.8bn USD. They have an immense network of connections globally. The arrangement is that they receive 5% of the total agreed sale price and I'm sure they'll work the bidders to achieve a higher price.

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This is very interesting isn't it ....

Very interesting indeed !

It's exactly like PSC was, the prison colony prisoners just sit and watch whilst the Chinese chef's swoop in & take the Chicken and make themselves some Chicken curry with fluffy rice...

Exactly the same thing just happened with TIE a few months ago too...

MTC Price at posting: 17.5¢ Sentiment: Buy Disclosure: Held
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