Member Info for Professor1

others, however, appear to accept the figures proposed by the investor’s experts at face value, subject only to minor ad hoc adjustments.76 either way, tribunals rely heavily on evidence led by the parties when calculating compensation using the dcf method. the expert witnesses who provide this evidence, therefore, play a central role.

73 lieblich, w.c. (1990). determinations by international tribunals of the economic value of expropriated enterprises. j. int’l arb., 7, 47.

74 marboe, supra note 40, 234–239.

75 ripinsky & williams, supra note 18, 197.

76 in tethyan copper v. ****stan, the tribunal went a step further and argued that there was no need to consider the implications of

uncertainty about predicted future cash flows, as these risks had been fully accounted for in the cash flow predictions themselves on

which the valuation was based. no other investment treaty tribunal has endorsed this so-called “modern” dcf approach. the use of this

approach raises issues that go beyond the scope of this paper. tethyan copper company, supra note 48.

IISD.org 18

Compensation Under Investment Treaties

3.2 Income-Based Valuation

Income-based valuation techniques use the expected future income of an investment as a basis for determining its current value. Income-based valuation techniques are forward looking, in the sense that the value of the investment is determined on the basis of assumptions about the future, not on the basis of the amount spent by the investor in creating or acquiring the investment. Over the past decade, investment treaty tribunals have increasingly used income-based valuation techniques to quantify the amount of compensation required by the “full reparation” principle, on the basis that this principle requires a tribunal to determine the financial position a foreign investor would be in

if the investment treaty had not been breached. Tribunals have also seen income-based techniques as appropriate for quantifying the amount of compensation required under the fair market value principle, arguing that the amount a commercial buyer would pay for an investment depends largely on expectations about the stream of future profits that the investment would be capable of generating.73 International tribunals were traditionally very cautious in using income-based valuation techniques to calculate compensation. However, these techniques are now widely used in investment treaty arbitrations, especially in cases where the investment was already in operation prior to the breach of

the investment treaty.74 By far the most common method for valuing an investment on the basis of

expectations about future income is the DCF method. The DCF method requires a set of forecasts of the net cash flow—i.e., expected revenue minus expected costs—for every year into the future that the investment would have continued to exist if the treaty had not been breached. (It is more precise to say “net cash flow” than “profits” because past expenditures do not enter into the calculation.) The predicted cash flow for each year is then discounted using a “discount rate” to arrive at a present value. The discount rate is based on allowances for the time value of money and for the various risks associated with the business.75 The time value of money is the concept that an expected return on investment of USD 1 in 10 years’ time is worth less than USD 1 now, based on the potential earning capacity of the USD 1 now. The total present value of an investment is the sum of the present values of the risk-adjusted predicted cash flows for each year of operation in the future. Beyond these basic parameters, there is disagreement among tribunals about how to account for the

range of risks facing an investment when using the DCF method. Some tribunals review multiple

DCF calculations provided by the parties, to try to understand the sensitivity of the implied valuation of an investment to plausible variations in predicted future cash flows and in the discount rate. ........

Accordingly, with the unconditional funding facility from LCM Funding SG Pty Ltd ("LCM Funding" or the "Funder") to support the claim under the Treaty secured, we are pleased to announce that the Company's Australian subsidiary, Indo Gold Pty Ltd ("IGPL") is now preparing to deliver a notice of dispute to the Government of India. This notice is anticipated to be delivered to the Government of India in the fourth quarter of 2023.

The claim is going to be BIG and it will be a wake up call when that notice hits the govt of India.

I am guessing but would not be surprised for a possible tie up with a European manufacturer to unfold

Sir Kritash

People do have important matters to attend to.

Seriously, I was actually going to post about the dream I had that you were drafted in here by the govt of Rajasthan. It's obvious you have so much dislike for PAT - wait when the BIG claim RNS lands!!

Thanks to a poster on another site:

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.eenewseurope.com/en/eu-to-form-e20bn-critical-materials-club/&ved=2ahUKEwiJk8XS6ZaCAxWVhv0HHTJJD9AQFnoECCgQAQ&usg=AOvVaw3Hiknxwom-v4FfIkylnjA6

From one of the other BB

https://www.livewiremarkets.com/wires/incredible-lithium-price-spike-on-way-as-new-chemical-capacity-drives-demand-says-brinsden?utm_campaign=&utm_medium=wire-page-share&utm_source=twitter&utm_content=incredible-lithium-price-spike-on-way-as-new-chemical-capacity-drives-demand-says-brinsden

Recovery here is going to be swift on any good news release

Hi ejt7777

Purely a guess

A) trip to west Africa and

B) interview

MB arrived in London yesterday, then he is out to another destination and will be back in London on the 24th

Kitrash

The more I read your posts, I get the feeling you do not wish PAT to succeed.

Just bought some more, as always the buy is showing as a sell

Sorry for sounding silly but could it be a big buyer trying to intice people here to sell and then he/she hoovering up the shares?

Are these sells being hoovered up by a big buyer in the background?

Compare this with Evolution mining. It has a market cap of Aus$6.798 Billion with current share price of Aus$3.70. At one of its four mines in Australia called Mt Rawdon (open pit), it has so far produced (since 2011) nearly 2m ounces.

At this mine:

It's Mineral Resources are at a mere 0.52 g/t

Its Ore Reserves are at a mere 0.61g/t

CHECK IT OUT

John

Firstly, what you, widespread at Kalaka, are long intersections , say 80 to 100 meters at .5g/t. Within these are a very good range of 12 to 15 meters at around 1.5g/t. I understand that the spread at Kalaka is all the way through like this.

So you get very large tonnage at .5g/t cut off grade but you also see other large intersections at very good grades.

K1 is just one of several targets at Kalaka.

Good afternoon everyone.

Agree on all that's been said. I believe the claim is going to be BIG.

Good to see you here John.

When one of those juicy RNS pops, I would not want to be locked out