RE: RE: Question Good question. If we are totally up in arms about a $405m offer for MWS and Ezulwini it would have to value FIU higher than that. If we say the true valuation is $600m then Waterpan would have to offer $300m for half. Of that $300m 150m would go to pay off the debenture holders and another 10m would be repaid to Gold One. We would then have $140m to start and build a war chest to pay back the March 2013 debt. Once the company was debt free in 2013 I would like to see a formal separation of the two components into standalone companies. MWS would run at full throttle and take on contract work if capacity allowed or if there was budget to build a fourth gold plant. Ezulwini would evolve into a much leaner operation with less employees and concentration on mining the higher gold bearing areas. I'd rather have less ounces at less cost and less risk. Eventully Ezulwini would be sold.
Is this pie in the sky? AngloGold is prepared to pay $335m for MWS alone. Conservatively this is worth at least $500m. Ezulwini is probably worth $150m++. Waterpan would be intolerable to AngloGold. They bought their minority holding and sat on their hands knowing that FIU management would screw things up through design or simple incompetence. Having a company like Waterpan come in and steal this company away should see Anglo coming up with a realistic counter proposal. I for one didn't appreciate the two company asset sale with the shareholders being promised a few pennies if they shut up and went along with the sales. The colossal arrogance of management will be their undoing and and there should be no generosity of spirit shown when we dump them.