I should have elaborated, unless the MZN find is significant, they will incur additional costs when compared to the development of the KDR EG resource. The MZN balance sheet would need a serious injection. I was able to build a discount cash flow model of the KDR resource for EG and valued the SP at $1.6. I'd like to do the same for MZN to make a more informed decision but at this stage there is insufficient information. Early project cashflow makes or breaks these sorts of projects. I used $36 for LOM to new as a Capex estimate and KDR need $4 billion but that initial deal to process ore locally makes a big difference to profitability.
MZN Price at posting:
1.9¢ Sentiment: Sell Disclosure: Not Held
