100% of cockatoo!, page-129

Kingy,

Finally finished my long winded post to see we both asked the same question re the gaps. We think alike.

While I'm here, a FA suggestion for someone that is inclined, is to compare market cap with the NPV for Irvine and Cockatoo using PLV and BDO figures. Those are unrisked. Then risk them and be extremely conservative. Dilute the NPV figures by a reasonable share issue.

See how low you have to go to justify the current market cap. There is an obvious floor to Cockatoo of $20m which equates to the sale price. Then compare these against an alternative methodology such as $ per ton of resource. From memory, Ravensgate had it around $100m for Irvine. Then discount the $per ton to justify the market cap. Compare your multiple solutions from the two methodological approaches. They wont correlate that well, partly because the Irvine PFS was based on half the tonnage that currently exists. Make adjustments if you wish or just ignore it as part of your conservative calculation. The PFS figures included capital costs for worker accomodation and a runway etc. Adjust these out now that we have Cockatoo or leave them in and be conservative.

My point is that a range of independent people (Ravengate/orelogy/BDO) and PLV itself have prepared project valuations. Suprisingly, I see posters conjuring up there own valuations without first examining/posting comparisons of the existing ones. I find that strange.

Some quick responses to some recent themes:

Forget stupid aguements that Irvine will have difficulty with finance. Projects that are that NPV positive, with an IRR that high always get financed. Capital cost is not the primary sensitivity. I have said this before.

Cockatoo is not the main/only game as some posters have stated. Irvine is the main game based on current knowledge. Cockatoo is an excellent fit to the main game.

Have a think about whether a letter of credit comprises the use of debt or equity. Or is it simply a facility aligned to inventory without direct recourse to more general assets. Is Irvine ring-fenced from Cockatoo or do credit providers have recourse against Irvine assets. Some posts on letters of credit have been wrong, but more importantly arent asking the right questions imo. And before you ask, I dont know the answers based on available information.

There is more, but I'm getting long winded again.

Cheers
Bleasby