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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Last
0.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $6.375M |
Open | High | Low | Value | Volume |
0.4¢ | 0.4¢ | 0.4¢ | $28 | 7K |
Buyers (Bids)
No. | Vol. | Price($) |
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3 | 3325500 | 0.4¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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0.5¢ | 6054982 | 10 |
View Market Depth
No. | Vol. | Price($) |
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3 | 3325500 | 0.004 |
20 | 11661559 | 0.003 |
9 | 4868868 | 0.002 |
3 | 3800000 | 0.001 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.005 | 6054982 | 10 |
0.006 | 6100555 | 5 |
0.007 | 1343681 | 6 |
0.008 | 606448 | 3 |
0.009 | 100000 | 1 |
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