They call it carried-interest vs. a non-funding interest like ENAMI got with QB2, which would align more with your explanation.

Agree, Teck pays in advance for our share of capex and reimburses themselves, including the interest.  These days, capex would probably be paid in 2-3 years?

Yes, the NPV considers the full capex cost, which is funny considering that Teck would only pay a fraction of that with a loan.  Anyways, that part belongs to Teck and we can't leverage that.

The PEA IRR does not consider the buyout cost, which should be part of a purchaser's business case.  That's why I think a major would consider the acquisition cost + capex and/or interest cost when investing in a business opportunity.

Anyways, regarless the acquisition NPV percentage that the market is ready to pay, I think that having the "carried-interest" helps to somewhat bonify that percentage, but I no longer think it's worth as much.

IMO.

MoneyK