GREY:AFRIF - Post by User
Post by
franciso1on Mar 02, 2013 10:45am
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Post# 21066729
Ntem value
Ntem value Simple math for Ntem
With grade they will have to process approx. 2 tonnes for 1 ton of product
comparative to Nkout process of 3 tonnes for 1 ton
Production cost at Nkout is 30$
So at Ntem it will be approx 20$ and less as transport will be less
The buy choice seems very easy for Posco
Why pay 150$(inflation?) per ton during 35 years at a rate of 5 millions tonnes per year or more
They could have Ntem for free if they sell back Nkout and Akonolinga IMO
A simple royalty for Ntem of 10$ per ton for AFF is 50 millions per year at 5 millions tonnes prod.
50 millions, 35 years discount rate 5%
PV is 818 millions
https://www.investopedia.com/calculator/annuitypv.aspx#axzz2MNg76vvE
at 10 millions tonnes per year it is 1,6 b$
at 35 millions tonnes per year it is 7 times 818 millions or 5,7 B$