Hindsight author? Surprised I hadn't read this previously. Was the project cost really a factor? I know myself and GK didn't think so. Mix up between NPV and SP? I don't think so. Is it the project timeframe? I still think the sell off on DFS was down to the "number of months" for finance. I had not expected that. Is he right on PIs getting a lick of the spoils? Time will tell.
I think you'll find that. once this project gets the green light, the publicity will be extraordinary and people will want a piece of the action as soon as the profits for the next 100 years is mentioned in a primetime interview.
Hi Superleggera, Welcome back from Glasgow - hope you voted? For a unique project like this (and believe me, I am WELL enamoured of and invested in SXX!) my old employer would have had a look, required a post-tax IRR of 25% in the UK, and even if it convincingly jumped that hurdle probably decided not to go ahead because the cash flows would not be in their management control. I'm not saying all companies would take a similar approach, but we had more good investment projects than money and could be/had to be choosy!
Afternoon all Aye Scotty I'm just back from Glasgow on them there knackered tyres (I like my money's worth). Two Sportec's ready and waiting to go on though. Re: funding, I think that a substantial part of the funding will be brought by a partner who will indeed bring something extra to the game and will have more than one way of earning from this project.
Crainleigh We're agreed, an off taker deal along with the off taker providing debt. Re: your previous co "avoiding investing in partners", fair enough, but had they seen a project with prospective gains of this magnitude, and uniqueness then they may have thought differently. Would your previous company not have looked at getting involved in the financing of a project Like this?
Canetois Don't mean to cause you any angst with my funding suggestions lol, but I find the funding aspect of this project interesting, especially which element will be the initial catalyst. It's a good guessing game, and no doubt our BoD will be wetting themselves whilst laughing at some of our suggestions (don't tell me that they don't occasionally look in here) apart from my ones that is lol.
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