RE:RE:RE:RE:RE:RE:RE:RE:JV economics2024golden wrote: Yes, thank you...so the jv partner has to pay share of operating costs....which we are told is now 90 cents per pound...lets say $1/lb.
So every year the jv partner pays $13m and takes 13m lbs of copper production...correct?
Copper price is not what I feel or think, the world copper price is getting pretty close on $4/lb...may well be over that before Flo const gets started.
Best just to deal with reality, that is they won't use copper prices where they currently sit when coming up with final deal. For example, look at "put" prices in copper right now. With $3.80 US current price, look at April $3.50 "put" contract prices. Extremely expensive compared to actual disparity between strike price and actual price. Why? Market makes you pay bigly if you want to assume prices will stay this lofty for too long before a large pullback. Point is you can't use today's prices when completing the deal. And JV pays their % of all costs, not just C1. Think AISC.