I have trouble understanding the negative reaction of some.
KWB's market cap is now supported by $18,000,000.- in cash. For the buyer to break even, It will requires a future 1.8 Billion NS Revenue! Not counting the opportunity cost of $18 million, at least 3% / year. When will the 1% revenue stream start? Three years from now? Five years from now? These projects seldom start on schedule.
I am sure both parties have done their due diligence, and this result is a win / win. KWG has what is best at this time. Anglo is looking for cash flow in the future.
Keep in mind, KWG has a 28% interest in the Big Daddy deposit and may earn an additional 2% interest in it under an option agreement to create a joint venture with Cliffs Natural Resources. This $18 million may be of use in ensuring that 2%, which could be worth more than the 1% NSR. Lets not second guess an obviously competent management team. (I wish I could say the same for the NOT gang).
Deke
