A little surprised that no one seems to have read the IE report much further than the conclusion on the range. I'm sure Westcott will (meant as a compliment)
EY earnt their 200K for this one
- range was a little higher than I has cynically expected
- discount rate of around 13% real looks about right for country risk for project. But far too high for the corporate overhead given Perth management are certain to be paid (overstates value)
- Given the nature of the report no mention of any synergies available to Hanlong (understates value to Hanlong)
- long term real iron ore prices of 130c/dmtu are aligned with consensus
- they used 2011 cost data from the DPS. Almost two years old. No mention of whether these costs were updated to current levels
- page 44 says freight cost is between $15.55/t and $15.34/t then the model uses 15.5 c/dmtu. Wrong units (overstates value)
- page 50 there is significant downside (but no upside) to project timing. A two year delay reduces project value by 40%.
The last is the true kicker which overstates value with the "base" no delay assumption. Any delays in standalone SDL financing and/or approvals destroy huge value.
- Forums
- ASX - By Stock
- SDL
- independent expert opinion out
independent expert opinion out, page-59
-
- There are more pages in this discussion • 86 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
NEWS
Antler Copper Project hits major permitting milestone – air quality permit advances to final review
CC9
Chariot Corporation (ASX:CC9) refines Black Mountain strategy, launching Pilot Mine to seize U.S. lithium opportunity
LU7
Discover the strong preliminary feasibility of the Bécancour Lithium Refinery, showcasing resilience in a low pricing environment and a strategic plan to capitalize on future price recoveries