Bouhr
Two parts to the equation but I look at it as SDL being purely a miner.
Mine – 35MTPA
First part can be 75% debt funded – So would need close to $200 to $250M.
Whatever equity interest is sold they would need say minimum $250M. The rest can be financed.
If NPV of Stage 1 is around $4-$5 Billion and if their dilution of the project goes down to 76% after the governments take then we can work on round numbers at NPV being $3.5B for SDL’s share
How much of the project do you give away when the deposit is no longer stranded and you have a viable Rail & Port solution and full offtake for life of stage 1 if all we are doing is mining?
If they sold 50% stake for $500M, project would be free carried with no further finance required and no further dilution.
If we then retain say 50% - NPV 1.75B – discount it by 50%-75% for risk then I get a rough value of around 12.5 - 25C per share.
With such low costs for stage 1, I would be very disappointed as a shareholder if they gave more than 25% away. Payback is too quick not to use some sort of debt funding on 35MTPA operation
If more was sold then I would want some stake in the Port & Rail Infrastructure as well.
Cheers
- Forums
- ASX - By Stock
- SDL
- brokers coverage ....who to believe ?
brokers coverage ....who to believe ?, page-19
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SDL (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online