RE:RE:RE:RE:USDHeywood_Silvers wrote:
Oh by the way, did anyone notice that the base case NPV figures were concerning the first half of the mine life? So, zero value is given to the back HALF of the mine life?? Obviously, that would have to fall under my "goodwill" category which includes blue sky exploration, etc.
Since yesterday, I've been wondering just what the point of this PEA was if nothing materially changed from 2013. Your point here brought me back to a question I asked the board (and got no response on) about Paul talking on Crux. He mentioned one of the ways WRN/RIO was discussing the plan was if RIO agreed to fund the project's "capital costs," they'd get the rest.
This clearly means the potential on any future exploration and/or extension to the initial mine life. IMO, our sale price will be a % of the Base Case, Phase I after-tax NPV in the Feasibility Study, which
should have a lower discount rate, and RIO's input, giving it more assurance as to the number we're asking.
Maybe there was a plan to this PEA after all. Right? I'm leaning more & more toward this PEA was not to improve the NPV, but to give Rio an updated idea as to the CAPEX.
Remember, to BHP, this project
was too small. Rio can handle US$2.75b easily and will be paid back in 3 years for the trouble. IMO, we're done shortly after the FS.