Hi Barney gets down to the DFS. MGO are looking to finance the development (NFC to facilatate 70%).
So the likely plan would be to service the debt from production.
Back of coaster maths -
Starting at25mtpa with say @.05% copper equalivent
125000 tonnes of cuEq @ $8000 = $1Billion
Take out a third for cost of production still leaves $666 million.
This could service the debt and still return more than 50 cents a share at current issue.
Of course theres also the PNG government wanting to buy into 30% of the project, and the intention to double production to 50mtpa.
One things for sure if the DFS proves to be a goer then the current market cap will look like a gift.
IMHO
Oscar
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