In short - the Chinese (LOMON) were offering minimum $200m funding.
Large and High Grade Mineral Resource
•959 million tonnes at 6.1% THM
•One continuous deposit
•Cut off grade of 3%
•>100 years at DES production rate Maiden Ore Reserve
•161 million tonnes at 8.2% THM
•21 year LoM
•Just 17% of current Mineral Resource.
2012 NPV over $300m, IRR of 29%, LOM Free Cash Flow $1.15billion.
Whoever gets this asset has a long life asset with plenty of upside. I can not see MDL/Limb and Boulle sell this asset to a competitor, more to the point why would the Chinese let it go.
So to answer your question, yes this asset is worth over $200m. There are going to be so many opportunistic acquisitions coming in the coming year due to commodities being smashed. This is one of them. They don't even offer cash, only shares...why is that? IMHO BSE are going to have cash flow problems next year themselves..... not keen to own their shares.
BSE Price at posting:
20.0¢ Sentiment: None Disclosure: Not Held
WTR Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
