""Jantimot makes perhaps the most salient point here; if Oceanwide is making a transaction based on a simple exchange of "we finance this for a 10% discount" then they don't give a flying fig about the shareprice of CuDeCo. Indeed, their return on equity is a guaranteed 10% of the value of the product, regardless of how profitable the production of the product can be. The higher the spot price, the more the 10% is worth to them.""
Well Bly, taking that statement in full consideration, it appears that Oceanwide is standing to make a real motza out of CDU, and us, for the investment they have made, considering.
Now, take in consideration that from what has been written in these posts that we are going to mine approx. 120,000 tonnes of copper per year, and that we are selling it at $8,000.00 per tonne, they will stand to be saving/collecting around $96,000,000 per year for their initial investment of around $130,000,000 million dollars.
That is close to 74% return per year on their investment. Not a bad return is it...!!!!
(120,000 X 8,000) X 10% = $96,000,000.00.
There is no doubt whatsoever then that the Chinese know what they are doing and that they aren't doing anything for nothing. As it is usually the case, it is their way or the highway.
Cheers
CDU Price at posting:
$3.10 Sentiment: None Disclosure: Held
