When will Botswana produce?, page-28

In light of my previous post it will be very interesting to see what Internal rate for return (IRR) SFR targets in the T3 project. I would hope it's exceptional say 30% before tax ungeared. That's because the Dolgunna mine was exceptional. It also allows for a large margin for error.

The usual way to get the IRR up is to get the project to have borrowings. That is favoured two ways.
Firstly you have less of your cash in it leaving free funds to develop other projects and or mitigate the risk on you project at startup the most likely time for failure due to inability to service borrowings. (Banks are prepared to lend you money f you have a heap already on deposit with them!).
Secondly if you use borrowed funds you have a tax advantage the depreciation and interest being deductible.

Some of you may know this and the answers to these questions I'm just throwing the generalities out there that illustrate what a strong position SFR is in.