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manny100

5,695 Posts.

2498

12/12/22

15:33

Post #: 65279239
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Originally posted by fooca: ↑

At what price would you be willing to accept for the combination of $ capital return (if any) and LLL share entitlement (converted to a cash payment)?

I have previously thrown out some numbers on capital return / LLL shares converted to a monetary price.
The longer this drags out, the less we shareholders will see returned (opinion)

$ Capital return = $20M
LLL shares offered at $0.40c (25% discount, in essence I think that is still too high for a buyer of FFX) = 210,941,543 x $0.40 = circa $85M
$20M + $85M = $105M / 1,178,136,200 = $089c per FFX share

The above is an opinion only and I maintain that a buyer looking to take FFX lock stock and barrel would not be paying / offering $0.40c per LLL share, to get control of the 17.6% holding. I would also make an assumption that the "alleged $40M" will be substantially a lot less when it is crunch time. That would be no fault of the company, the tidy up in Mali will take some time as well as, no doubt discussions with the ATO, ASX, ASIC.

This will not be settled quickly, nor will it produce the type of result (monetary) that shareholders seek.

Why hasn't there been an announcement of the resignation of Taplin? We do not need a COO as we are not operating anything . . . . .

cheers

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Agree, i do not see a premium on the LLL holding on a sale of FFX. The buyer will want a decent discount for the holding risk until escrow ends. The longer this goes on the worse the result will be for holders.
The safest thing for the BOD to do is to run on a skeleton staff, distribute the bulk of the cash ASAP and distribute the LLL shares when they come out of escrow. By the time escrow ends there will have been 2 years since the Morila cash debacle and they would assume many holders would have been through the 'blowing off steam cycle' by then. ASIC/ASX would have moved on as well - from doing zip anyway.
I would not be surprised if they decide to buy into a resource as $40 mill will go a fair way especially with 17.6% of LLL shares they can cash up after escrow.

FFX Price at posting: 20.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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