RE: RE: RE: jduadeJduade,
I agree that this is a very good deal for NML, but I think you should have another look at the press release. If TATA decides to participate (which they will) NML is carried on 20% of the project and has an option to participate at an additional 16%. This is much different than having to finance 36% of the project. They also have an option to participate at a further 4% should TATA decide to bring in a third party, bringing their ownership in the project to 40%.
In my opinion, worst case scenario is that we end up in a 20% carried position. Best case scenario is that we get the DSO cashflowing and participate in the project for an additional 16-20%.
Keep in mind that our 20% of the DSO is carried as well. The cash from that could see us in a 40% ownership position of the largest iron ore deposit in the world, almost entirely carried.
Good work to all the longs. It has been a lot of years in the making but I personally am glad to have waited.
Balkwilj