Hello, Its hard to guess. I do not know how to value takeovers and they often don't make sense to me. For example:
1. In 2015, the company SIR was taken over for $1.8 billion, when the SIR DFS in 2014 estimated a life-of-mine net cash flow of $2.74 to $3.5 billion over 10 years. The ore reserve appeared only 10 years at best.
2. Recently, DEG was offered $5 billion for a project that the DFS opex indicates will earn around $10 billion in net cashflow over ten years at the current gold price. While DEG has resources for 20 years, generally lots is uneconomic, which is probably why GDEG has ore reserve that might last 11 years.
It follows for PTR, I guess the project could earn around $8 billion in cashflow over 40 years at current prices or $3.5 billion over 20 years after subtracting the CAPEX. Therefore, if the deposit shapes up in 6 months time at 400 million tonnes at 6% titanium, I hope for a takeover of at least $500M . This looks very cheap compared to the takeover examples above.
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