OK, I am unsure of AVZ's logic in estimating an enterprise value for the Manono project at $US5.66 billion.
viz: whilst no substantive quantification as to the merits and the quantum of the damages claim is provided in the Request, it appears on face value that the amount of the damages claims is based on Jin Cheng holding a 15% interest and Cominière a 10% interest in Dathcom, thus suggesting that the Claimants are valuing the entirety of the Manono Project at US$5.66 billion;
AVZ's logic is that if 25% of Manono is 'worth' $US 1.416 billion, then 100% is worth $US5.664 billion (ie 1.416b divided by 0.25).
I think this is over-simplistic because we do not know specifically what Cominiere/Zijin are claiming to have have lost. It is likely their claims are based on more than just a combined 25% share of Manono. For instance, maybe the loss of future discoveries within the tenement boundaries; the loss of future earnings or royalties, and maybe the loss of other opportunities that are unrelated to the actual tenement. Maybe they are also claiming reputational damage (LOL).
Since AVZ does not know the detail of Cominiere & Zijin's claims, the company cannot simply assume an enterprise value by multiplying the Cominiere/Zijin claims by four. It is likely more complex that that.
Cheers
F
