RE:One overlooked factorNaturalCurrency wrote: Synergies between Timok and Rovina - since they are only a few hours apart, it is quite logical that there might be synergies for capex, equipment, transportation etc. - if their were a single owner. Not sure if this has been discussed here before, and if anybody has any opinion of how does the IRR change, but it is a strong argument for Timok buyer to be seriously looking at Rovina, and actually pay a premium due to potential synergies.
Very good hint.
But note the following point: The largest share of the CAPEX of CAD 350m is the Processing Plant. 20,000 tons are processed per day. Rovina is in Romania; Timok in Serbia. Distance is 350 km.
Calculate the cost of transporting 20,000 tons per day over 350 km. That's at least 600 trucks. Transportation costs about $ 500 / truck; $ 300,000 a day. About $ 10m per year. In addition there are the costs for the border crossing. Romania is European Union; Serbia is a third country.
urai58