Can you explain to us how investing $654m into a project that will return $1.4billion in free cash flow over 20 years, which equates to $363m in present value (i.e. value today) discounted at 8% is a bad investment?
Or, if you want to put it in different terms, are there really a multitude of other investments available to an investor where they can earn above 15.2% per annum (which is the project IRR) on $654m over 20 years? Especially in the low interest rate environment that were in now?! Historically, even the XJO index "only" returns 6.6% per annum.
Obviously there will be dilution in the event of a equity raise to finance some of the $654m required, however, my bet is that today's shareholders are still holding on to value worth multiples more than the paltry US$20m market cap, especially once debt financing from EXIM bank is approved (which represents 1/3 of the Capex required). We can also be sure that IBG will be looking for other financing options to make up the shortfall as outlined in the BFS announcement.
Note that I have no expectation for you to provide an intelligent answer to either of my above questions, because I believe you don't understand what NPV or IRR even mean. Guess you will just have to stick to your investment thesis and I'll stick to mine
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