@Goldies Interesting finance deal. If I read that right Nomad's part of that deal provides $75m up front for 37.5% of the first 150,000 oz Au produced and then 30% of the next 535,280 oz (to 685,280 aggregate).
That's $363m to them for their $75m up front, after allowing for the $100/oz ongoing payments.
0.375*150,000*(1776-100) + 0.30*535,280*(1776-100) = $363m
Production isn't till 2024 and ramp up to full production takes till 2030. So they have to wait for their money. What sort of compound return that works out to be depends on the production profile over that time. So hard to really judge. The market seemed happy with it, based on Ivanhoe's share price reaction. If you just assume they received $363m at 2030, in return for their $75m up front this year, that would be around an 18% compound rate of return. Could be less than that if it takes longer to produce the ounces required. Would be better than that counting the payments they receive from 2024.
I really should find something better to do lols.
