If you look at the very low market cap of Rusoro Mining (TSXV: RML) relative to the very high odds that they will collect on their US$1.76 billion judgment against Venezuela through either the upcoming auction of Citgo or a settlement beforehand... RML is going A LOT higher.
Citgo is sitting on US$3.9 billion in total liquidity (mostly unrestricted cash in a U.S. bank account) to negotiate initial settlement payments. Earlier this month, U.S. oil and gas producer ConocoPhillips said it sees "light at the end of the tunnel" for resolving its US$1.3 billion judgment that it is seeking to collect through an auction of Citgo.
ConocoPhillips CEO Ryan Lance said, "Yes, we're right in the middle of all those conversations, as you might imagine, including the most recent conversations around the CITGO refining assets. We're in the queue, we're in the -- right in the middle of anything that would happen there. We have -- as a reminder, an ICC judgment of $2 billion. We've collected about $700 million on that judgment to date. So we have an outstanding -- what they owe us on that particular judgment."
This means settlement talks might already be ongoing today between Venezuela's PDVSA and creditors Rusoro Mining (TSXV: RML), ConocoPhillips, Crystallex (now owned by Tenor Capital), Gold Reserve, Gruma SAB de CV, OI European Group BV, Koch Minerals, Huntington Ingalls, ACL1 Investments, Maritime Support Co, and PdV 2020 Bond Holders.
An auction of shares in PDV Holding, whose only asset is U.S. refiner Citgo Petroleum, to pay claims could be scheduled by September 5.
Crystallex filed a motion yesterday attempting to stop Venezuela's appeal to the March 24th decision that RML can collect from the Citgo auction proceeds. Crystallex believes that because Venezuela lost its appeal against them, they shouldn't be allowed to appeal the March 24th ruling that Rusoro Mining (TSXV: RML) can collect from the Citgo auction proceeds. This legal matter was already decided on by the same Third Circuit Court and Venezuela lost! Crystallex believes the auction of Citgo should be scheduled immediately!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.