Here a run down considering you obviously DIDN'T read the announcement
million dollar payments (not indexed with inflation) spread across 2 years up to 4 million.
Royalty payments at 7.6% or 5.7% based off ore quality (Most mills will pay bonuses of approximately that amount due high quality fines any so that's free carried for the new company)
Royalty payments are based of the CFR spot price MINUS $35 US (i.e sale price today would be $140 - $35 = $105). So we only see approximately 75% of the current spot price and the discount is indexed with inflation.
Royalty drops to 1.4% - discount after 10mt
Royalty is NOT guaranteed until 4 years after sale completes so in other words they can mothball the tenements leaving ADY with no revenue and no access to the port.
ADY has not asked for a guarantee on development of the mine just "Oh yes we promise.." But no CONTRACT or recourse on non-development
ADY assumes all redundancy payments for contracted staff over 400K
ADY has the ability to sell fines to the new company at the CFR MINUS $60. Oh that's a good deal, considering its half price at today spot prices.
Oh and off course ADY loses its its debt owed from Vallenar + the cost to acquire to ownership. More millions down the drain.
This leaves us with 1.5 in the bank and a bunch of tenements without a measured resource. They get multiple mines/tenements + low grade stockpiles for 4 million (in installments) that with the right equipment, has billions dollars worth of ore in it. They then pay us out of the profits from our ore.
Here's an idea ADY.. You don't mine. So how about you fire all the Chilean staff, including Clarke; who has sat on his behind watching the company fall to it's knees. You then wait for a good price with little to no operating costs.
I will be voting NO.
ADY Price at posting:
3.5¢ Sentiment: None Disclosure: Held
