General PSC Chat/Discussion, page-1113

Let me answer the question with another question. Lets say you have 5 different prices from 5 reputable companies for the long term contracted SC6 price.

650usd/t
700usd/t
750usd/t
800usd/t
930usd/t

What's the most reasonable price to use? IMO it's not grabbing the bottom, it's not grabbing the top.
If I was drafting it (and i'm not), I'd either use the average price across all companies or i'd grab it somewhere around the mid-point.

The money that moves PSC from 200M to 1000M MC isn't going to be fooled by amending some SC6 pricing assumptions. They will have their own inputs in mind. The only suckers that read NPV/IRR on face value without the ability to rerun outputs on new assumptions, is retail.

With that in mind, anyone viewing the PSC NPV now should see upside already - irrespective of price used. but with context hey everyone else is using higher inputs and this is the lowest MC/NPV. Seems good.

PSC could pump out an NPV of 1.5bn using 1400usd/t and probably be laughed out the door by the parties doing the financing along with the institutes asking what on earth are you guys thinking. Operating in African jurisdictions your almost nailed to the stake and scrutinised to the highest degree. CXO pushed the boundary first and now LTR has jumped over the fence.

The input price is literally the only component that a company has no physical control over. Either prior or in operation.

Secondly it's one of the most arbitrarily assigned ones around. Meaning the numbers can move based on a choice of "which one we using". In that instance, it's the one i'm least concerned about - because you can easily amend it and it's exactly what I do in sector/peer comparisons to level the playing field.

The above is entirely my opinion, i'd recommend people speak directly to the company to seek their angle on the topic. Otherwise you're just asking the view of a guy invested in the stock, not the one making the decisions.

SF2TH