Absolutely agree. AVZ needs to actually inform the market on these rumours before trade Monday, full stop. What needs to be informed is the following:
1. Has AVZ attained the 15% stake from Dathomir and is that stake in its hands and recognised as been in its hands? Yes or no answer. If yes, has Dathomir now challenged that sale and if so why? If the answer is no to the shares been in AVZ's hands, then how is AVZ resolving this issue. A key to this is has the checque for the 15% stake already been given to Dathomir - yes or no? At the end of the day, this 15% is what gives AVZ 51% ownership minimum in the project following the CATH.
2. Related to 1, the announcement suggest that AVZ who has a 75% stake in Dathcom will give up 24% holding for CATH. Question - how does this work relating to 1 above? The presumption for me is the 24% will come only if AVZ actually has 75% of the project, and therefore cannot be a minority shareholder in Dathcom. Is this presumption correct? If teh answer is no, then can AVZ end up with 36% stake in Dathcom - yes or no.
3. Relating to the 15% from Commineire, it is a pain in backside if AVZ does not end up with 66% of the project following CATH, but my question is what is the state of play here. Has the transaction with Zijin gone through - yes or no. If yes, how does AVZ intend to deal with that and similar if the answer is no.
At the moment, AVZ will remain a shorters paradise as uncertainty is here and markets don't like uncertainty.
@sydneyguy I agree with your post in that it is my interpretation as well, but the fact a lot of things have been said since and fundamental clarity needs to be done here and the only people who can do that is AVZ itself. If I read correctly the last ANN, AVZ is implying 1. we have Dathomir's 15% stake already in our hands and it been recognised legally as in our hands, 2. Cath will get 24% from AVZ making AVZ's minimum share 51% and 3.) there is uncertainty with the other 15% so we may not get to 66% even though we think we have a right to 66%. However, frankly there are some gaps, and by gaps I mean statements to the effect that we have attained and fully own and cannot be taken away from AVZ the 15% stake in Dathomir acquired, and hence the questions above.
All IMO IMO
