RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:13.5% copper grading with after-tax IRR of 106% for TimokIt makes sense that Timok value is transferred to goodwill for accounting purposes for now.
I am surprised that NSU shareholders have so little faith and trust in the management. After all, NSU has discovered, resolved all political/tecnical risks and built a mine in Bisha and this mine is very profitable. There is no question that NSU has strong fiscal discipline, but the track record of consistently meeting all project schedules and under budgets speaks louder than words. This tells me the team has to be very thorough and has the ability to eliminate or mitigate any unexpected risks and this is in addition to their expertise in mining, exploration, and operation.
I would expect the same approach when Nevsun did the due diligence for the merger with Reservoir Minerals. The Nevsun team must have reviewed all the technical information and data on Timok as well as the other projects. I am sure they have also reviewed the PEA report, IRR number and payback timeline as well as CAPEX requirements to start the top zone mine and knew the potential variances to those numbers. If they did not believe in the merger, would Nevsun paid an extra $2 per rmc share?
Nevsun stock is consolidating since the completion of the merger. When all the sellers have sold their last shares, price will start to move up then.