Positive SP Action, page-57

CPC have the benefit of only having to front the 90m USD project carry if the project is going ahead, i.e. they only pay if the project proceeds. CVN could have weighted the sale differently, and received less up front cash in the hand and more as project carry. It really is rubber envelope stuff to try and value the remaining 10% by just adding the funds received and project carry together.

So while it is appropriate to discount the 90m USD for the time value of money, it is also worth noting that CVN's remaining 10% of Dorado would be worth significantly more than the first 10% if it is also bundled with an STO % partial sell down, and/or FID approval. Either event would significanlty derisk the initial investment for the buyer, and this would be reflected in a higher valuation for the remaining 10% of CVN's Dorado, and also increase the value for the 20% holding in Pavo, with Pavo being dependant on Dorado proceeding.

I think the board could flip CVN's remaining 10% and very quickly and everyone gets ~30c/share with Pavo upside retained, but imo they are looking for maximum value and that comes with FID and/or STO selling down a percentage and a return closer to 35c, maybe 40c if Pavo is included. Bring it on!!!