This is the same structure as QB2.

Agnico pays $290M US cash + $290M US for the first $590M US in capex + 50% of the remaining capex.  Since capex is expected to be between $1B and 1.1B US, I'm under the impression that Teck would finance about 50% with debt (similar to QB2).

At the end, Agnico pays about 50% of the capex to get 50% of the ownership.

For QB2, Sumitomo paid about 30% of the capex to get 30% of the ownership.

Therefore, eventually, someone willing to pay 25% of the SC capex ($662M US) could get 25% of the ownership when the project will be at a similar stage.  Compared to the previous two transactions, we have a full carried-interest, which could add some benefits, but our purchase would also required full payment upfront vs. staged payments.

I'm willing to take $500M to $600M US today and move on.  I don't think we will ever get more, expect if copper and gold move a lot higher.

IMO.

MoneyK