Net Present Value of Donald at $2 billion with an internal rate of return around 33%.
Half a billion in capital costs to get the project going,but profits of half a billion PER YEAR for 31 years.
This should open the way for financing - either through capital raising, a joint venture or debt, or some mixture.
The study sets out a two step process - lower capital costs and contract mining to get some cash flow happening before expanding into an owner-operated mine.
Still some risk, although with the dollar falling the risk could be on the upside. Looks like a good buy at current prices - pity there aren't any sellers!
A slow burner, but if finance is arranged and construction begins within the next year, you'd have to expect a re-rating.
good luck to all
ATR Price at posting:
$1.00 Sentiment: LT Buy Disclosure: Held
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