9 months following this transaction, Teck came out with much better numbers for QB2. 

See slide 27.  https://www.teck.com/media/QB2-Partnership-and-Sanctioning-Conference-Call.pdf

Worst case, let's assume that the minority group was aware of these numbers at the time of the transaction.

For this exercice, I'll be using Teck's reserve case.

• NPV (8%) with copper at $3.00 US - $2.0B US
• NPV (8%) with copper at $3.15 US - $2.5B US (estimated)
• NPV (8%) with copper at $3.25 US - $2.9B US

Assuming the below payments in time for the QB2 minority group:

• $52.5M US for closing in 2018
• $60M US for EA approval in 2018
• $50M US 30 days before first production in 2023

Optional:

• $33.3M US 1 year after first production in 2024
• $33.3M US 2 years after first production in 2025
• $33.3M US 3 years after first production in 2026

Discounting all these values 8% per year to bring them back in 2018 dollars:

• $52.5M US for closing
• $60M US for EA approval
• $34M US 30 days before first production
• Total of $146.5M US (2018 dollars)

That's $146.5M US total for the 13.5% interest (valued at $270 US) or 54% of the NAV when using copper at $3.00 US.

Optional:

• $21M US 1 year after first production
• $19.5M US 2 years after first production
• $18M US 3 years after first production
• Total of $58.5M US (2018 dollars)

That's $205M US total for the 13.5% interest (valued at $337.5M US) or 61% of the NAV when using copper at $3.15 US.

Based on the above, 54% to 61% of the NAV was the selling price, for a project that was less than 1 year away from a production decision, without factoring in the carried-interest to production and location.  Both in my opinion have "district" scale", as QB2 is only using 25% of it's known reserve to operate the initial 25 years.

IMO.

MoneyK