GREY:NEVDQ - Post by User
Comment by
westcoast1000on Oct 13, 2021 1:59am
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Post# 33999800
RE:You have been hired >>>
RE:You have been hired >>>Not,
In my view, the tougher question is:
What would be a price at which Pala would sell?
In simple terms, we cannot answer that in any sensible way right now. In other words, no offer should be considered.
The exploration going on as summarized in the latest investor presentation indicates substantial unproven and potential reserves. What is the right price for these assets. No one knows.
The price of copper is the other big uncertainty. In 1 to two years we will have a lot better idea for the medium term price of copper. It could be anywhere from 5 to 8 dollars within a few years.
How to price that uncertainty in?
Finally, the management team has just been assembled. What is that worth, when they may well be able to bring in the open pit without anything other than some equity and more KfW debt.
So I think a better question might be: how much should NCU ask for, say, 30% of the open pit?
All the best. GLTA.