There is a certain logic to the $2billion for 25% of an $8billion project, but I don't think a valuation will be this simple. As an aside, the increased TPD processing (plus more minerals in Paramount) that has been talked about the last year plus makes an $8 billion NPV (5% discount) or more quite possible.

I think the bigger question for Teck is the total price of buying out Schaft + capex. Say $2 billion for Schaft + $4 billion or so for capex. This could easily be a $6 billion dollar project for Teck, so they'd need to think seriously about this and strategize how best to monetize Schaft in a timely fashion and communicate it to shareholders. I'm sure Teck is well along the way in sorting out how to buy us and how to communicate this to shareholders ... but it's a big undertaking.

Really can't wait to see how Schaft gets valued here as I'm not sure how to turn my own numbers over any further. Just don't know what Teck is thinking/planning or offering. I'd take $5 happily.