Share Price, page-7

Ropoh,

how on earth is that attractive? you want a giant to pay 1.5billion dollars (50c/share) to takeover a company with very little cash, has debt and no operations and a project with an initial capex of 3.5billion dollars?

Economics make no sense, $18/t margin x 35mt/year = $630mil profit, IF their costs hold (which forecast is never reliable, especially in a non-mining experienced company with geo-political risk) but assuming they hold.

You pay upfront 3.5billion (i.e. 3.5 bil debt) with 630mil profit gives a payback of ~6 years and makes the NPV8 and NPV10 negative at project year 10. Thats not attractive, especially if you then add the 1.5billion you're asking for the company, makes it a 9 year backpack (approx) and a net negative NPV10 at year 20.

I don't think you should take up economics. As for where the $62/t comes from, thats the AISC quoted by the company in their recent presentation.