it is, and I
took it as an opportunity to research more about my blind faith in ASX Announcement being legally strong. What i found is alot of background noise around Zinjin and their dealings in Congo. They all look suspicious at best.
What
i also found is a company that HAS a Mining License. A license that can only be given if they prove 4 pillars
- Environmental approval;
- Proof of financial capability;
- Favourable cadastral opinion; and
- Favourable technical opinion.
Within that is legal ownership - you wouldnt award a license to someone that doesnt own it right?
So we know by virtue being awarded the license that all conversations related to how we got our 75% is done and dusted.That only leaves legal wranglings on the remaining 25% of which 10% is given to DRC; leaving 15%
news flash - We never had the 15% remaining, it was never guaranteed and the market I do not believe factored that in. No NPV/ No research report really spoke about this as the value offering
It appears Zinjin managed to steal first rights at the 15% through a forum that apparently AVZ did not want to facilitate so they did it without us and nulified our right to the 15%. This after AVZ paid millions for the 75% - Smart move by AVZ to mess up on missing the email huh?
But surprisingly, in parallel AVZ is talking to the Government at the most senior levels about advancing this 15% - Go figure... How dumb - they miss the email from the Tribunal and waste their time talking to the President about something already done...
So to summarise
A) We never had the 15% and B) We lost our right to it if at all - For this We lose 600m in market cap on that!!?Someone please correct me as I have spent way too much time on this today.
On the contrary, this is about this:
The day we entered the ASX200 our short position increase 5x - the price on that day ? 95c
Why did we get shorted to begin with? Because we invest in the DRC and we all know africa is uncertain in the best of times . That is a shorters paradise.
To
day we took away all that uncertainty and made the crucial mistake of addressing more uncertainty - Why Nigel? there was no need.. BUT what we didnt realise is acknowledging the uncertainty in its self creates an environment where buyers are less courageous and a few well placed significant sell side trades creates a stampede allowing for the undoing of this significant short-position. It should have been a short-squeeze, they got lucky...
That is what happened today and whoever soldout then sadly you got manipulated and i'd argue deservingly so given the lack of conviction.
Good investors buy for a reason, the intraday share price is irrelevant. There was no reason to sell today
I hope the new 120m shareholdings that entered today are here with more conviction. I can tell you most of that is the institutions that now will profit the other way at those shareholders expense.
A sad day for the ASX and its credibility...
