RE:RE:RE:Opinions?I think (not sure how its all broken down in the propsed deal) there is potentialy (???) other value barried in here to Hebei or another buyer. After the deal was announced last fall comments below mentioned the Gubevu BEE loan. Releases later mention buying most of the BEE's out for the +/- 25 mil but they also mention transfering all loan agreements ect. to Hebei... Not sure if that means the $58 mil Gubeva loan would be transfered to Hebei or is somehow settled in the BEE buyouts???
"September 16, 2015, Vancouver, British Columbia – Eastern Platinum Limited (the “Company”) is pleased to announce that the Competition Authorities of South Africa have granted unconditional approval for the transaction whereby Hebei Zhongbo Platinum Co. Limited (“HZP”) is to acquire the Company’s entire platinum group metals (“PGM”) business
and all investments and loan agreements that Eastplats has with its subsidiary companies (the “Original Transaction”). "
https://seekingalpha.com/article/2727165-beginning-and-end-of-south-african-platinum-operations-presents-opportunities?li_source=LI&li_medium=liftigniter-widget
"Even more important, the acquisition of Eastplat's South African assets comes with a potential BEE Partner in the form of Gubevu Consortium. Gubevu owns a 25% interest in Barplats, the largest company being sold by Eastplats as part of its proposed deal. That in and of itself largely means nothing as you have to have a BEE Partner to own a mine in South Africa but here Gubevu Consortium has two significant reasons to be Hebei Zhongbo's partner thus reducing the BEE cut required to move a deal forward.
- Eastplats owns 49.9% interest in Gubevu.
- Eastplats owns the $58 million loan used by Gubevu to purchase the Barplats interest. In other words, Gubevu only realizes value from its investment if it assists Eastplats in closing the deal with Hebei Zhongbo.
It is fairly common for a company wanting to do business in South Africa to loan money to the BEE partner who then purchases a stake in the company wanting to make an investment."
There is also the +/- $300 million in tax losses mentioned in the Aug 6 MD&A that would potentially (???) be valuable to the right entity or down the road if there is ever any profits...
"Upon closing of the Acquisition, the Company will reclassify foreign exchange losses accumulated in the foreign currency translation reserve and losses allocated to non-controlling shareholders ($260,350,000 and $34,665,000 respectively as at June 30, 2015) to the consolidated statement of loss. "
Maybe the VW emissions issues will cause some increased demand in the PGM's down the road ??? (Palladium=gas Platinum=Diesel). Who knows what they will find world wide for issues once all vehicles are tested. Could be lots of cars that need a rework??? Or maybe Palladium will be worth more than Platinum - who know's... Eitherway, these crappy metal prices "should" lead to a shortage & higher prices someday??? (sucks waiting though) ...
agreed "patience" is key
IMO - the large shareholders will try something eitherway...