Hi Tri,An interesting model in theory and i agree would be a...

Hi Tri,

An interesting model in theory and i agree would be a great way forward. Not sure thats how it will pan out though as It's been muted for a while that they will sell off their royalty rights for cash up front. The press release today coincides with TS heading to Exarro in SA from what i understand. I wonder if he's negotiating an outright sale of the royalties...

Dug out this article from about a year ago which conjectures that CFE's ultimate royalties could be worth up to $142m US. However should the path be an outright sale i'd say CFE would be lucky to get half that amount. My guess is perhaps $50 - $70m US mark.

http://blogs.wsj.com/dealjournalaustralia/2013/01/18/cape-lambert-prepares-african-iron-ore-royalty-for-sale/


Kasper