If FCV and BOE form a JV in Bayovar
The numbers would look much better for the two neighbors. Instead of building a plant, road, Tailings Storage Facility and other infrastructure for each company, the JV just needs one set. The CAPEX per ton should be much lower, given cost advantage arising from economies of scale. LOM is much longer as well.
Plus BOE has cash and more importantly the strategic partner, IFFCO, one of the biggest importers of phosphate. They may want to explore this opportunity during FLA 2016 (Fertilizer Latino Americano Conference).
DAN has a pre-tax IRR of 20.7%, but the after-tax number is not given. If available, I am pretty sure the after-tax IRR of DAN is in the teens. Any calculation involves manipulation, to some extent. If FCV reports the pre-tax number, all else being equal, numbers should look better. Packaging or impression management is important, to say the least.
BTW, according to Credit Suisse, phos rock prices have climbed by 7% in the past year, despite a lower price for fertilizers.