$500 million - for assets that have not been able to be sold previously and are non-core to the business. That's half the market cap cashed up immediately.
$2 per tonne indexed for inflation for first 20 years of production, expected to commence in 2014. That's an ongoing cashflow, or alternatively another asset...and an asset that is easily valued, like a corporate bond.
I fail to see why people have an air of negativity about this deal, or are talking about the deal being made or broken by the details...to those who wanted $1B in cash...just what exactly did you want Linc to do with this money? Don't you prefer a sustainable asset and cashflow, with half the market value of the company handed to you?
Not to mention the other assets still for sale.
I said weeks ago I was riding the whirlwind with this one, glad we got the first waypoint out of the way.
LNC Price at posting:
$1.86 Sentiment: Hold Disclosure: Held
