Daily price prediction thread, page-10661

Your kidding right. $67m up front spend has a huge impact on Npv. Do you actually know how that is calculated?

You can't pro rate anything from years ago. The Capex at muchea will be at least 67m. It's the same plant.

I'd do an updated Npv for you but they have not provided the annual cash flow. Suffice to say that 67m upfront cost will have a profound effect on the Npv as it is not discounted through time. If it was spent in year 5 say, it would be heavily discounted and a small impact but its not.

There was a reason why they did an ungeared Npv calc. And that is, coz the geared result would be crap.

Knowing tthe annual position would be helpful but it would probably show negative for the first 5 years.

The only hope of the side is Muchea with high yielding sand giving good profits. But that is light years away.

Imho & dyor