@yabster Uncertainty around the profit sharing agreement was...

@yabster Uncertainty around the profit sharing agreement was initially one of my biggest concerns. But the updated scoping study includes royalties and profit sharing, and even accounting for those two forms of taxation, the NPV for a starter pit covering now only 22% of known JORC is around $440m USD.

"...For MYL shareholders, based on a +/- 35% Scoping Study level of confidence, MYL has calculated a Net Present Value range of US$260 million to $620 million and an Internal Rate of Return of between 41% and 86% for its 51% project interest, after royalty and production share. MYL holds a 51% participating interest in the project through a contractual joint venture. Payback is expected to occur in two years post commissioning."  - scoping study

The JV will be looking to negotiate an even more favourable profit sharing agreement. The JV already holds the mining licence, so the advice from the company is "...Upon completion of feasibility studies we will present the results to the Minister, which will include a detailed EIA and SIA. BJV will apply to the Minister to have the term of the existing concession extended and the taxation regime amended to be in line with more recently agreed profit sharing agreements"

I think the take away for me was this deposit is (and will be even more so) extremely profitable for shareholders despite the large amount of money that flows to the government, and that's a win-win and probably the way it should be for a project of national significance.