TSXV:HRE.H - Post by User
Comment by
mrstockguyon Mar 10, 2015 8:55am
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Post# 23505371
RE:Breaking Down the Latest Release Into Plain English
RE:Breaking Down the Latest Release Into Plain EnglishThis is my take on it
A) Krys need to get on with their court proceedings in Russia. Whatever the outcome, they now need to move on this and stop delaying because they need a deicsion to back up their argument in Ontario.
B) Krys have a huge amount of pressure to finalise the JV with Centerra. Parliament has given them 1 month to finish negoitaions. We knew this couldnt happen but now this information is in the public eye and it cannot happen
C) Head of Kyrgyzaltyn Tokon Mamytov has to stop lieing to the press and inform Parliament that they are close to a deal. If they win in Moscow, they will use this as ammo for the press that they have momentum but tey will have to revise their statments. Whether this is enforcable is a 50/50 situation.
D) Regardless of this decision, the decision is in Canada. Whether they can uphold the injuction is another story. The canadian courts know their is a real risk of the asset being disposed and I suspect this injuction will be held and enjorced becuase there is a risk. However this is where the lines are blurred. Can they hold this down. Parliament are calling for nationailsation and the government are looking for a deal with centerra. I think we'll be able to hold down this injuction regardless of what court proceeding happens (ontario or a new one).
E) There is not going to be a lot of buying now. Its too high risk. Especially if russia comes back with a decision in their favour. I think Stans know they might which is why they are caveating everything. If the Russian decision comes back in our favour, then there will be a lift in the stock price
F) They clearly havent tried to negotate, although many peoples consipracy theories on this board that they have and there is a deal with Centerra on the table. The Krygs have their pride and they are not backing down.
G) If Canada hold down the injuction and if we have to go through legal proceedings again, this means another year for Parliament to complete another hearing and another year to put a deal on the table with Centerra. The fact they tried a worldwide anti-enforement junction and denied was good news.
H) Stans will run out of cash soon.
I) Centerra is not getting involved and doesnt want to be. They dont want to mix their affairs with a Junior minor.
The news is good but there is a lot of risk. Obviously everyone is optimistic on this board but some of the stuff thats been said is because everyone is too close to their shares. I've got a huge bunch but I'm realistic here and I coudl lose everything. Not saying that it will happen but we're not going to be rich anytime soon.
Anyway, thats my take on it. I expect I'll get abused again from people (by the few usual for not posting positive news) but we've got to be real.