valuation

A couple of great posts Shadowboxer.A valuation of $400m gives a share value around 50cents. The secret is how to unlock the value. I basically understand what it means if we have the first right of refusal if Xtrata sells their interest ( that its ours if we match the offer).of course we don,t have the dough.Thats where PNGSDP would probably have come in.We would have on sold to them.Thats unlikely now after their AGM they will revert to an aid agency to look after the people of Western Province for the next 40 years.
Xstrata have been looking for a buyer for Freida and others for the last 12 months and I'll bet they haven't had any offers.Any buyer will need very deep pockets - read Chinese. I think it will take a Government to Govt deal to get it up and running like they did with Ramu.
Now that the Ok Tedi situation is all but resolved ,the PNG Govt now holds the whip hand,they are entitled to buy 30pc of Freida plus they have the operating experience of the OT people. While the OT people can run an operation at Freida they may not have the where with all to build it. We know the Chinese can.
My guess is the shareholding will end up 20pc Hiighlands 30pc PNG Govt and 50pc Chinese builders/copper producers.Like the MCC arrangement with Ramu.who knows what the timeline would be but with a number of other copper developments being deferred in PNG there will be a push to get this one up.