The purchase price seems cheap for an asset returning an EBITDA well north of it.
This is likely based on the short mine life and costs associated with rehabilitation. I don't think they would buy it there was no possibility of extending production.
It seems they are very confident they can extend the mine life. Arctic have already built the prototype underwater machinery and are in the process of testing this year into 2024.
If this technology was proven to work, the purchase price would likely be much higher as they've stated if successful, it could extend production at least 10 years.
Therefore confidence may be high that it works. No guarantee it does of course and that's where they may be taking the punt so to speak
Ann: Transformational acquisition of the Ekati Diamond Mine, page-66
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