RE:RE:Lundin Buys More Copper & GoldQuick calculations:
1) Josemaria NPV8 (post tax) is $2B at 3$ Cu and $3B capex as per PFS.
M&I - 7.4Blbs Cu (0.41%CuEq), 7.8Moz Au, 33.5Moz Ag
Bought for $500M (i.e. 25% of NPV8). Adding $3B capex, the acquired cost will be $3.5B.
Cons - Jurisdiction risk, high capex and majority owned by Lundin Group
2) ST NPV8 (post tax) is $1.9B at 3$ Cu and $1.5B capex for 6B lbs of Cu and ~1.0Moz of Au as it stands today
If exploration goes well, we likely have ~15 to 20B lbs of Cu at ~same avg grade and ~2 to 3Moz Au.. NPV8 of $2.8B if production is bumped to 125ktpa from 100ktpa.
25% of $2.8B NPV8 will be $700M + $1.5B capex savings compared to JS - $2.2B?
Safer jurisdiction, lower capex, longer mine life and open for bids..
cheers
JG77