The costs will be shared. And it is my understanding that they are very modest.
Think less of ownership of a fixed asset & more about the sorta earnings that will be generated from this refining capacity.
To wit, at US$32/lb cobalt price, they will be pumping out more than A$100m per year in EBITDA.
In other words, if the cobalt price averages US$32/lb over 3 years, they would be able to generate A$300m in EBITDA - which is more than the acquisition price of A$271m (US$200m) for this 40% refining capacity.
How many years are these contractual rights valid for? Was it 72? Correct me if I am wrong, but 72 years minus 3 years = 69 years of ka-ching!
I've seen one modelled figure on this 40% of Coca-Cola's (no good with spelling Finnish words) refining capacity to be worth circa A$600-700m - which equates to 40c-47c per share based on 1.5 billion SOI.
Add in the ICO + SMP, etc and you can see the upside potential from here.
Cheers.
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