$45m is the value of the contract. Primero could have settled for a much lower amount, but has refused. I agree with this approach. Need to put in context the current market cap and the contract value - its very substantial. If the full $45m is paid it represents a significant uplift in valuation, it’s also working capital the company needs going forward on a relatively low margin business.
Expecting an announcement re arbitration this week.Wartsila are a major player with a multi billion dollar market cap - no concerns there.
What would be interesting is if NRW has another look at the company or not given it would be a cash box if the 45M is received.
PGX Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
