Two items that are most important and will significantly impact on valuations in the future, which I have downloaded and would advise others to do the same is the Financial Award (Spreadsheet) Annex A.
The answer about costings are covered from pages 192 onwards Bolivia Vs. Rurelec Plc Award 04/02/2014. I will reread in the fullness of time, but suffice to say I have a few issues with 'why the costings' were not awarded. This also perhaps explains the lack of commentary on the award and costs. I will start the thought process off: Why was such a sized award claimed when weighted against the commentary in the award and Financial Award Spreedsheet? In essence can it be suggested, Rurelec cost themselves significant costs by over-claiming?
If this lags the page up too much can people please message me due to its size. Atb Fraser
Fraser/Ian and all
ReplyDeleteIve just scanned through the judgement document, which starts to get interesting in the last quarter. I will point out some highlights and decisive parts (don't get too excited :-)) RUR won many of the minor arguments but lost several of the bigger battles-
Page 165- The Tribunal decides against RUR and allows a new hydro project (Rositas- which might never be built) to be allowed from 2019 in the power usage projections, which pushes some of Empresa capacity to be moved to standby. This was a big win for Bolivia
Page 168- The Tribunal accepted that Empresa, which was 30 years old, needed major capex - another blow for RUR
Page 188/89- A brief partial basis for compensation- Empresa was valued at $150m less $93m or so in debt divided by 2 (RUR owned 50%) = $28.9m
Page 192- Costs- "as there was no clearly successful party, they gave an own costs ruling" The Tribunal costs were split 50/50.
Page 195/8- One of the three co arbiters sets out his dissent to some of the decisions made against RUR re a jurisdiction matter they lost, the costs award and other matters, he has saw Bolivia as acting in an illegal but claiming legal remedies. Clearly he was outvoted on these matters.
I hope this helps.
Cheers. The Leggie
Fraser
ReplyDeleteIndaba Day One report, as requested :-)
http://minesite.com/news/indaba-day-one-diamonds-are-hot-copper-is-not-and-as-usual-theres-uncertainty-about-south-african-government-policy
Cheers. The Leggie
Fraser
ReplyDeleteDay 2-
http://minesite.com/news/indaba-day-two-the-door-is-open-for-m-a-but-who-dares
Cheers. The Leggie
Fraser/Ian and all
ReplyDeleteMoving on a little from the RUR position, I can offer a brief summary of the position re MET- Metro Baltic Holdings-
Share price 12p Market Cap £3.1m
Cash held now - Around £4.5m (E6m on 30/6/13 and costs running at around £500kpa)
and as cash is their only remaining tangible asset, NAV is circa 17.4p and then the interesting bit-
They have a court case in the Isle of Man shortly (early 2014 is as near as I can get) against the former directors, advisors and accountants for actions they took between 2007 and 2009 which is summed up in the curiously titled Trading Statement RNS of 3/8/11). This is a good point to start investigating MET. The latter part of this RNS lists the complaints a/ to k/ and they are very serious accusations. They are seeking E 26.6m from their directors/advisors and a further E 6m against their auditors Ernst and Young, having refused to pay their small final bill. Pershing are 58.5% holders and supportive of these actions.
If they fail, they have more than 12p per share to distribute to holders, if they win the guess is yours. The full E 32.6m would add £27m or £1.04 per share but they wont win the full amount and it is possible that the accused will attempt to settle before the case.
Im long but still planning to add to my position. Please feel free to comment.
Cheers. The Leggie
Fraser
ReplyDeleteDay 3 Indaba-
http://minesite.com/news/indaba-day-three-enter-robert-friedland-with-great-hopes-for-south-africa
Cheers. The Leggie
Ps- Stans Energy moved up 70% last night after fav Kyz arb move- sorry Ive not had time to tell the full story but there is still value here.
Leggie
ReplyDeleteThanks for the info on MET. I tried emailing the court for a date but after asking if i was involved they have chosen not to reply! i couldn't find a scheduled date on the court listings page.
See your short going well on NWR Fraser!
Oli
Oli- yes- court dates are often kept confidential- MET will RNS when they can re updates.
ReplyDeleteFraser- the tenge stuff is here-
http://www.halykfinance.kz/en/site/index/research/report:87349
They cover a fair few Kaz stocks, if you are interested.
Cheers. The Leggie