If you are talking about a business with steady cash flows and low competition, yes, maybe. But the longer you push out the analysis term, the more uncertain it becomes. The financial DFS case is based on some very large assumptions, these are the best guesses possible at the time, but they are guaranteed to be 100% wrong over the next 12 months to 40 years.
So there is a false sense of security in making investment decisions this way. I know this is how our financial system works, it's how we allocate capital efficiently, behave as rational human beings, etc, etc. It's how you get a project financed and built.
So IRR/NPV is important to get Sunrise financed and built. Really that's getting to the FID. Will banks lend money off the back of today's announcement, absolutely. How much and under what terms remains to be determined. Will CLQ need to raise capital to build sunrise, absolutely, how much and at what price remains to be determined.
Here is another 20-year LOM, significant project financials:
NPV (9.5%) $910mill
CapEx $916mill
IRR 20%
Payback 5 years
CLQ Price at posting:
94.0¢ Sentiment: Buy Disclosure: Held
