RE:RE:RE:RE:RE:RE:RE:RE:Spincos Coming Soon?RookieMining, still having trouble wrapping your head around the concept of optionality?
It is nothing like how you describe... cute though.
If NexGen were to take Arrow to production, the enterprise value should be worth well over US$6Bln or roughly $18/shs in the current uranium market. Not many miners, whether specialized or diversified, can afford to pay fair value for an asset as strategic as Arrow. IMHO, the large shareholders of NXE are (in light of current market conditions and the fragile state of financial affairs for most of our likely suitors) willing to accept something like US$2Bln + a royalty.
Perhaps in a bull market, a Cameco or Rio Tinto could pay $4Bln+ for Arrow.... but that is likely not happening for at least another couple years. This is why I say a royalty (and it depends on how it is structured) could bridge the valuation gap between what a suitor can pay now, and what the shareholders feel is ultimately the fair value of Arrow.
Make sense?