The JV is for the GW project 25/75 MEP/ADN. NNT is a 50/50 ownership structure and is largely a generator of IP which will be owned by NNT, not Newcastle Uni. The IP is likely to be leased or sold rather than operationalised by NNT. In that case the owners MEP/ADN will get 50/50 of the benefits, ....if the current ownership structure remains in place at that time.
in a chat over a glass if red after yesterday's prezzo, TB was reflecting on MEPs discovery of Prominent Hill and subsequent sale to OZL.AX, basically he thought that if MEP had tried to take the discovery to an operational mine it would likely have killed them as the costs built up. The.same could be said about the GW project, MEP owned the asset, the JV was set up to allow ADN to earn in 75% so they could be the project managers and use that expertise to take the project to production.
MEP created NNT, ADN was allowed to buy in to leverage the investment. I THINK that says something about the mindset of MEP as an explorer and creator of opportunity, rather than project developers. Why am I saying this...? Because I think MEP will do what makes commercial sense. As a result they will get more than 25% of the raw material return because of NNT how that plays out will depend on the scale of the opportunities. They are at a deep discount to their share of NPV of GW project without any of the other projects/opportunities, the what if...of Carbon Capture alone is a massive opportunity, should be a fun ride. GLTAH
MEP Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
