Esh
Given you legal knowledge
Tell me honestly how MZN could afford to go to court - damages could run tens of millions
The only angle i could see is if they had ultimate conviction for a win but we all know this is higly unlikely given they have admitted it relies on emails and phone calls, no HOA etc...
Happy to hear an alternative view but i cant see it
My previous post below, apols for those who have seen already
Lets look at the elements of the current disruption
Clearly KDR have had to slow things down to avoid cash burn as they certainly wont want to raise equity at these prices
Lets assume the MZN action is preventing further drilling out of resource, the ability to sign an offtake and the ability to raise capital
Lets then translate that in a delay of going into production.
I would assume conservatively that if they pull the trigger on the POS option they should throw off a minimum of 50m free cash flow annually. So there we have circa 4m a month.
The action commenced in November so we are in month 3.
Hence i would say a damages claim by the time this went to court could be well in excess of 25m
So if you were a MZN shareholder would u take this bet??
25m loss (liquidation) vs winning rights to kdr lithium (sure this is currently circa 200m)
I just dont see how they can take this bet even if odds were in there favour which they are clearly not
All IMHO
KDR Price at posting:
47.5¢ Sentiment: Buy Disclosure: Held
