NMT 5.32% 8.9¢ neometals ltd

Just wanted to add, that to me, when a company is trying to look...

  1. 1,415 Posts.
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    Just wanted to add, that to me, when a company is trying to look after its shareholders it tends to be pretty obvious. Similarly, when they are trying to screw them over its pretty obvious. One of the examples I can think of was SBB, which I was unfortunately duped. They had a massive cash position, and making significant profits. They had promised to pay a dividend, and yet qtr after qtr nothing was paid. They then claimed they were holding cash for a potential expansion, and again nothing was paid. Meanwhile the SP has fallen from 20c to 1c over the last few years. There is no support for shareholders there! Now looking at NMT, what a contrast! They are clearly trying to look after shareholder interests. Directors may need to sell for personal reasons, or even to take profts if they wish. But this company has gone all out to support the SP with dividends and share buy backs. I personally think they wanted to support shareholders who were especially patient after their darkest times, which was near extinction at one point, just before they partnered up to get MM going. Now with no debt, decent cash position, poised for decent cash inflows, we are on the brink of some significant projects that in the longer term could significantly transform this company into a billion dollar company.
    Regarding the potential legal issue with Ward claiming offtake commission, you should look at the worst case scenario. Even if he were to win, the agreement is 2% of offtake. NMT have previously announcement that Ward is claiming a one off fee of about $2.3mil for selling a portion of the mine to Ganfeng. NMT should not pay ongoing offtake fees for the portion of the mine they have sold off to the offtake partner. This would be double dipping in my opinion. Imagine NMT sold the entire mine to Ganfeng, and paid its commission on that. Would NMT be liable to continue paying Ward for any offtake Ganfeng takes? I think not. My point is this, that the worst cast scenario is that offtake is payable on the portion of the mine that continues to be held by NMT. So even if NMT gets sued, and pays 2% of the 14% of NMT's share of the mines offtake per year, it becomes a fairly negligible amount, its roughly $1mil per year. Even if NMT were to pay this out of their own pocket, and not be divided among RIM, its not going to change much for NMT. Perhaps most of this concern will be laid to rest if NMT sells its 14% stake in MM, which IMO should be valued well over $200 mil currently. We'd have more cash on hand than our MC, which would hopefully lead to a substantial div and share buy back, and provide ample funding for several of the projects.
 
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