RE:RE:RE:from June 2019 nrSibanye has 90 days after the Feasibility Study is published to decide if they want to buy back to 51% ownership. If I understand correctly, they'd have to pay 31% of the capital costs outlined in the FS to raise their ownership to 51%.
Right now, our best estimate of the capital cost is from the PFS, $431 million. So they'd get 31% of the project for $431 x .31 = $133 million. Or they could get the 80% of the project that they don't already own by taking out GENM. Current market cap is ~ $75 million, so a decent premium could be offered. In any case, I can't see them wanting 51% when 100% can be had cheaper.
I always wondered why Sibanye entered into this agreement in the first place. They knew what was there. I thought they must have seen an risk in the next step that they weren't willing to take themselves, but were willing to hand off to a junior and pay a premium for if it worked out. But if that was the case, the buy back should have been triggered by a positive construction decision, not a Feasibility Study. So I don't understand Sibanye, but, I expect if there's a buyout in GENM's future, it will be coming from them.