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4.7¢ tivan limited

Yes and pigs might fly.

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ando1

3,276 Posts.

527

11/02/21

22:29

Post #: 50914567
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Originally posted by Digity1: ↑

Interesting one for investors discounting the ability to finance this project.

Obviously we've got Kfw potentially arranging and providing USD600m.

I came across this - KMPG Corporate Finance, acting on behalf of their client BCI Minerals, secured $450 million in NAIF funding for a potash project in WA. Goes to show there are big amounts of debt available and funding projects.

What I also thought interesting were some of the parameters of the project. Mt. Peake is a far superior project from free cash flow generation and efficiency.

1. total CAPEX of ~ $800m
2. annual EBITDA of ~$200m
3. Pre-tax NPV of $1.2B
4. IRR - 15% (BHP are taking years to determine if 15% is efficient enough to proceed with Jansen).

What was most encouraging and something I've raised recently is the discount rate used in this low rate environment - is 8% to high a rate to discount your cashflows.

BCI Minerals has used a 7% discount rate which I still question as being high.

To quantify that, if we use TNG's latest NPV8 of $2.8B and applied a 7% discount instead of 8%, NPV increase to $3.15B.

$1-$2 @brunod

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Yes and pigs might fly.

TNG Price at posting: 9.0¢ Sentiment: Hold Disclosure: Held
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Last 4.7¢		Change -0.001(2.08%)		Mkt cap ! $82.87M

Open	High	Low	Value	Volume
4.8¢	4.9¢	4.6¢	$18.40K	382.4K

Buyers (Bids)

No.	Vol.	Price($)
7	836870	4.6¢

Sellers (Offers)

Price($)	Vol.	No.
4.7¢	5083	1

View Market Depth

No.	Vol.	Price($)
7	836870	0.046
8	830452	0.045
1	227295	0.044
1	13000	0.043
1	70000	0.041

Price($)	Vol.	No.
0.047	5083	1
0.049	479450	1
0.050	717581	7
0.051	16000	1
0.052	500000	1

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