RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:13.5% copper grading with after-tax IRR of 106% for TimokA reminder these return assumptions on Timok are not at all JORC compliant given a FS cannot be made on inferred resources and most of the book value of the company now has been transferred to goodwill.
As a result the conservative holders of NSU who had the assumption they were strictly interested in producers or JORC compliant projects given what was said in past conference calls are selling out given the increased technical risks of the company.
In addition, there are some NSU share holders disappointed the firm having the stronger accounting value giving the Reservior shareholders any stake in the company and lucrative divdend. If they were confident in the technical risks the deal should have been structured as an all cash deal. (BTW the diluted cash per share is now closer to 70 cents a share after the deal).
My thoughts here is dependent on how you value mining technical risks. Given 75% of the time properties are over exaggerated in their quality. I highly consider this factor in making an investment.