There is still a case to be made that this was the better option, even if enami was profitable. That is if the following are all true:
1.) there is a heavy split in our favor, something like 80/20 or better on the preferred dividend arrangement; and
2.) the additional profit from the existing stockpile to run through the FF plant vs sending to Enami can be shown to be worth an estimate of several million dollars. Using $5,000 differential from the sample and scaling down to reasonable gpt estimate; and
3.) This was not an insider deal cash grab.
If all 3 of those can be shown, it will earn my trust of this company again. #1 and #3 are simple to provide shareholders. Their unwillingess to do that to this point is very concerning.
And #2 is not all that complicated. Simply use an estimated gpt of the entire stock pile and the difference in estimated value from using enami vs ff plant. You can just compare revenue, you don’t even need to prove out whether Enami was profitable or not. Show that the difference in top line revenue based on the current stockpile is worth $Xm . This shows that shipping to Enami is like throwing an estimated several million dollars in the toilet versus using that money to instead pay for expensive financing that provides an FF plant that is more valuable to the entire operation including the decades of ore that will be mined beyond what is currently stockpiled.
Again, at a minimum, these 2 huge assumptions need to be made transparent:
a.) There is some gigantic 80/20 or better split on the preferred dividends; and
b) this is not insider financing
The financing terms must be made transparent!!!