Post by
74volfram on Jan 28, 2015 4:27pm
answering Mr. Kilgor and JCM
I do not work or consult for Almonty.
CAPEX per unit year capacity was $360/mtu and it is $180/mtu for the new mine plan. I think it is actually quite a bit cheaper than for the the old plan.
IMC would get a great deal from the off-take at the terms already on the table.
I do no think IMC has dropped out. It is possible however that they have sensed Dundee losing commitment to the mine and they are trying to get better terms from a weaker party on account of the lower NPV and maybe even force a liquidation on the company, where their loan would be holding senior rights vs all other obligations. Who knows what they may come up with. It a sharks world and when weakness is sensed, they are ruthless. That is why I believe it is important to go in negotiations with them with a credible partner or a plan B. Dundee could have avoided all this by providing the bridge loan now or a PP a week ago.
Almonty and Dundee do not have other common interests that I know of and Almonty is probably too small to provide major favors to Dundee. I also think only the Sangdong team will remain after the merger and maybe one or two of the directors. It is hard to imagine how Dundee or current Dundee management can profit more by handing this to Almonty than by doing it themselves, unless they have decided they can't.
About voting against the merger. I think the situation will become more clear in the next few days. There will be more NRs. and management material to go with the voting instructions. More about the company's cash position and maybe even a final decision from IMC.