GREY:MLKKF - Post by User
Comment by
chengjooon Mar 18, 2008 9:17pm
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Post# 14745544
RE: Wheaton Deal at $7.50
RE: Wheaton Deal at $7.50The $7.50 figure is notional. There are two variables one can use to arrive at the IRR of the whole exercise. Using a higher sale figure would correspondingly lower the IRR, and vice versa. It is likely a combination of the two variables that was negotiated by ML and SLW. In any case, don't forget that there is also a NPV on the future values of $3.90 per ounce SLW has to pay to ML from the 4th year one( or lower price should silver fall below that price. ML management knows what they are doing to protect shareholders' interest. In earlier NR's they had also stated clearly that they expect to finance their Phase 2 developments from on-going cash flows from operations. They have not overlooked providing for this capital expense as some post suggested. ML management is certainly on top of the situation.