Duluth Metals Ltd DULMF

RE:RE:RE:RE:What Anto had to say

[DearBear6]

I'm thinking Anto is possibly thinking 4 things. 
1. Paying for the 25% of DM was too much in the favor of DM and not good enough for Anto. I think this is most likely IMO. "we have taken the decision to terminate our option to acquire an additional 25% of TMM now that the pre-feasibility study is nearing its completion and due to elements of the Participation Agreement."

2. The Mine is getting to be too large."The 2009 Preliminary Economic Analysis (PEA) calculated a Net Present Value (NPV) of $1.6 billion and an Internal Rate of Return (IRR) of 23% using a 10% discount rate. Initial capital expenditures to develop the project were estimated at $1.3 billion." 
https://www.mining.com/duluth-metals-continues-to-advance-world-class-twin-metals-minnesota-project-27162/

The mine CAPEX might be well over $2b now, which would be 25% of Anto's Market Capitalization. This adds more risk to Anto. Less likely IMO.

3. The mine is too risky with too many environmental considerations, delays, and Anto thinks it's best to not own over 50% of the mine. Less likely IMO.

4. Takes too long to develop the mine. Ten years from now China's demand for commodities might decrease significantly, since the government started and designed it since 2000 and real estate booms (bubble) will stop eventually. Anto may think the mine will be worth so much less in the future. I think this is likely, however I don't know if Anto considers this.