RE: That17 Apr 2020 19:24
If you recognise the value of cash in the future using a discount rate/return on capital (DCF) of 15%; with margin over cost per ounce to extract of $500; and assume a timespan from day one of 13years for 20m ounces: the Present Value (PV) of Haveron is equivalent to 28p, but GGP only own 30% of Haveron, hence about 9p per GGP share. Maybe there is more than 20m ounces and maybe they can get it out of the ground faster, and maybe the will accept a lower discount rate, all of which will increase today`s value of Haveron. NC is not a fairy Godmother; so my view is that they will drive hard, realistic bargain. However they might pay a premium for another 5% to get to 75% with the legal advantage that may bring, under English Law, if that is what prevails.