At last update i believe it was held by Stone HK,who were looking for a buyer,one had an option but from memory had decided not to buy,however would not be surprised if an attatchment order is somehow placed on the holding by those owed money as Stone HK effectively own SHK Australia and the directors are certainly their appointees.Possibly forcing a sale to meet SHK's Australian debts?
All supposition of course and no facts known.
A mute point commitments made by a subsidiary,without apparent cash and how liable a parent company can be held and something for the legal beagles to no doubt ponder. Much like the 4g?/ton ore milled and yielding nothing like expected as NEX experienced just as when SHK originally milled their ore,very similar to the original sites mining problems that all but bankrupted the original A1 minerals until SHK moved in.Maybe there's a tailings dam with 3g/ton average ore sitting for whoever wants it there for BGSM?.
Currently it looks like the Laverton interests are worth next to nothing,unless royalties are negotiated out.
Money to be made by whoever negotiates a satisfactory conclusion to the Laverton conundrum.Also the SHK/NEX settlement,but do FML (Shandong) want to be party to this mess anymore than they currently are? Maybe the Australian goodwill to be gained and that with the service industries and companies owed money and their peers may make it worth it,with an eye to the future growth of Shandong? Shandong's moves are being watched not only by shareholders awaiting information but by analysts interested to see if they can become an active competent manager of Non-Chinese businesses or not?Their acquisition offers have been rejected before through these fears existing. Nothing like having good "FACE".Shandongs recent activities within China indicate they wish to not only be the most profitable in their industry,BUT,"The Most Respected".
Consolidation of the Laverton holding,not worth it as it is and the ore already stockpiled from high royalty areas not worth milling unless royalties are eliminated.Not worth owning and also why sort it out to give 20% of it away?Hence the Laverton writedowns of $20mish on development to date.
certainly deal upside,if deals can be done.
DYOR+DYODD currently i know nothing.Holding on $175m++ cash being in the bank after this QTR,maybe $150m if they sort out royalties once and for all.They have certainly indicated those royalties will yield nothing in the near future to royalty holders unless bought out-a very large negotiating TRUMP card in any game of Poker.
FML Price at posting:
2.6¢ Sentiment: None Disclosure: Held
