Hi@Dancing, maybe I haven't expressed myself correctly. I'm saying that if the JV partner purchases a 30% stake in the project, they own 30% of SDV. Therefore, they are responsible for 30% of costs and retain 30% of future profit. Is this what you disagree with?
It may not be clear as it's spread over a couple of posts, but what I am saying is that GXY would have to sell 30% of SDV for around USD$250m in order to have enough capital to fund their 70% of SDV's assumed total development costs (USD$400-450m). The JV partner would still be responsible for their 30% of this total figure, which would work out to be USD$120-$135m.
Therefore, using my assumptions, over the period of development all the way through to completion of stage 3, a JV partner would be required to contribute somewhere in the order of USD$370-$385m. Again these numbers are just my opinion, happy to be corrected.
I don't think that offers will be made as a percentage of existing NPV, even at a discount. The last DFS update (15 May 2018) valued SDV at US$1.48b at an 8% discount rate. This figure is no longer even close to being relevant. GXY are working on a "refreshed" DFS, which is due to be released around May 20. Even so, potential suitors will come up with their own valuation for SDV, independent of the existing or refreshed DFS.
GXY Price at posting:
$1.09 Sentiment: Buy Disclosure: Held
