RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:My two centsYou are correct Sooner, there is risk on both sides of the table: A party could overpay for an asset and the other party could undersell said asset. This all boils down to how well the parties negotiate.
What we know, per Paul, is that RIO isn't worried about the PEA figures that we have been debating for the last 7 months since the headline NPV was published. There likely was a minimum price tag established a year ago and RIO was intrigued enough to take the plunge so to speak, thus allowing them to perform their due diligence beore taking the next step which we believe will be a full acquisition.
Where will this all ends nobody knows. The truth likely lies somewhere between your $6 and my upside of $20. Paul has at one point said $2 billion would be a ceiling and then in later interviews alludes to that celing being too low. The situation is fluid, we don't even know yet if another suitor will get involved for a bidding war.
My guess is that he BoD has some sort of % of NPV target, hopefully using a more realistic mine life and discount %, that they are trying to achieve. RIO has to be assured that the price tag makes sense given the metallurgy, core samples, etc. from the recent drilling and evaluation of the project.
Anyways, I hope everyone had a happy Festivus yesterday and has a Merry Christmas tomorrow. Cheers!!