RE:RE:Free Cash Flow vs Net IncomeCoocoo,
It may appear there is a friendly competition for the remaining 0.8%, however no Western bank would finance a mine in the Congo at this point. Which means either Zijin, a state owned Chinese miner arranges financing, or IVN must go to equity markets.
It would be useful to remember that IVN gave away an equal 39.6% of the project to Zijin for only $412 million. The Congo government was then awarded 20% as protection money. I don't see what they have to contribute at all. At one point IVN controlled 100% of the project and surrendered 60.4% in exchange so far for $412 million. If the Chinese don't arrange financing you would have to conclude it was a bad deal for IVN. And you're right. There are no guarantees financing will be forthcoming.
However, I believe it will work out and Zijin will come up with the necessary funds. I don't see any reason for them to hold back. RF made a trade off when he put this deal together. IVN gets a smaller piece of a large pie, yet all the pieces are in place to ensure the project transitions smoothly into production.