I align to your line of thinking, however, I vary it as follows.
One would imagine that the project would not be "taken" from SDL and left empty handed based on the current circumstances. At the very worst, I would expect that SDL would be given the opportunity to sell the project as a "trade sale" which, in theory, would give shareholders some upside from where SDL is as presently. Albeit with the Cameroon government overseeing the sale process.
An in-situ valuation would reveal a value of atleast AUD1.5bn. using a price of AUD150 per tonne, 1bn tonnes of contained ore and using a 1% ISV percentage. Note all 3 paprameters are at the lower end of market expectation. So a very conservative estimate is put up here.
But have faith in GJ as I very much do, and I expect that the project will come to fruition by SDL.
HB
SDL Price at posting:
13.0¢ Sentiment: None Disclosure: Held
