50mt @ $150/t with costs of $22/t give you an annual profit of $6.4 billion p/a
What are the chances that in these 'discussions' SDL offer Hanglong the 'strategic partner' role, 50% equity in the project for about $1.5 billion; they'll then hold a direct 20% interest in the company, plus a direct 50% interst in the project.
The funds are then available to start construction of mine, port, and rail, and we can all be happy, Hanglong would save a lot of $ in having to develop and buy out 100% of SDL, and SDL shareholders will enjoy their yearly 'value rise' of their SDL shares.
I'm guessing a bidding war would could see Hanglong having to pay a whole lot more for SDL (up to double), so this would then become a cheaper alternative, not considering the years of experience the current SDL employees can offer on the project dynamics.
One things for sure, all this suspense with the uncertain future of our company is killing us!
SDL Price at posting:
52.0¢ Sentiment: LT Buy Disclosure: Held
