Settlement amount
As of 10 Feb the court settlement was Cdn $148 million which is US $111. Daily interest payments were Cdn $7,256 i.e. US $5,436. Kahn settled for US $70 million which is 63 cents on the dollar. I was expecting better than that from the company, especially thinking how big they had been talking.
Mongolia is crowing, saying that this settlement proves that they honor their debts and that other companies will now consider investing in Mongolia.
I bought the stock in 2014 for 40 cents a share. I have a profit, but not much for a two year wait and I was expecting/hoping for a lot more. The company indicates that they did not think that the Mongolian government was going to honor its debts, and so they decided to take what they could.
I wonder what the company is going to do with the money. They have previously hinted that they might buy a new property, but if so they would have to use their money to develop it, and $70 million doesn't go that far. They would probably have to issue more shares to raise money to develop their new property. Of course, with gold and uranium prices so low for so many years, there are some properties out there that are basically developed and some even have a mill in place. With gold, and soon uranium, starting to climb, they might find a great property that they can buy at a very distressed price and use their money to actually develop it.
If you want to sell here, Kahn has 84.1 million shares and so the $70 million would be worth US $0.83 a share. Will have to see how high the stock price actually goes.