RE:RE:RE:Let’s see if Jonathan puts his money where his mouth is, I would just rather see them spend our cash on buybacks and Borborema as opposed to new minining investments. Borborema should distribute cash if the mine is built as opposed to a small mining pubco which may reinvest cash back into the next project. Also the Big River pubco costs should fall away with the Aura/Dundee privatization.
If Aura's acquistion of Big River goes ahead, Dundee will own 20% of the asset and will likely have to fund its pro-rata share of any incremental equity required to build the mine.
Aura's a big dividend payer so it would likely only go ahead with the Big River acquisition and hopefully Borborema mine construction if they were confident on the the cash flows. Of which 20% should also flow to Dundee if/when the mine goes into operations.
Big River's Borborema feasibility study (updated June 2020) suggests a US$90M capex and avg EBITDA of US$72M/year (@ $1,550 gold price). So if Borborema is entirely equity financed, Dundee might have to write a cheque for ~CA$25M but would earn CA$19M per year over the 10 year mine life.