RE:RE:RE:RE:RE:That's the way it goes!Before today, based on the Oxide, and my estimated NPV of the Sulphide deposit they had discovered prior to this, I put the NPV somewhere near $50 per share. Mining deals are never done near NPV, as the capital and risk required require a return to take on and develop over 4 years.
Plus, my estimate of NPV would have been higher than the market would have ascribed.
I would have thought a takeout price was $6 to $10 prior to today.
Today was game changing. Before you had a nice easy cheap $20 NPV cap, and underneath a massive block of .9% copper, which is a very large mine, at an above average grade.
Now you have identified an entirely new animal, and drilled into a large block of 5.34% CuEq. That's "Bonanza" grade. That's within a KM of rock at 1.8% CuEq. So now you have bizzarely rich rock dispersed within the massive rich block. You have a larger system.
Filo Del Sol will be one of the great copper mine discoveries of this decade. It will be producing copper long after anyone reading this has passed on.
BHP and RIO and VALE will have their executives briefed about this result today.
In charge of this, isn't sometime prospector that got lucky, and can get suckered out of their full value by a big company. Its the Lundin family. They've developed and made billions in mines and oil around the world, and in Argentina, where this discovery is.
So $2 - $3 Billion, or $20 to $30 a share take out. More results coming, so it moves to the higher end of the range with additional good results, to the lower end if the new results are meh.