Smeenk' calculation
posted on
Oct 28, 2016 04:20AM
As far as Smeenk' calculation goes, we are talking about 600 Billion in revenues over a projected 200 year period for the chromite, excluding the EN. 3 Billion in revenues for just the chromite per annum. NPV is calculated for a period maximised to 10 to 15 years, on the conservative side 5% of 30 Billion or 3 % of 45 Billion. RCF does have an issue in a sales process, the larger part of a 2 century cycle a freeride for a Chinese buyer. The Chinese take a longterm view as where retail has the shorterm one, RCF possibly mediumterm to convert their stake. Conclusion is that there is no need to wait for the next boom cycle in commodities, there will be numerous cycles given the minelife (looking through Chinese glasses :-). Why bother or wait ? Second conclusion: Start dividing the Large Pie, there is more than enough for everybody (10% stake for FN on road agreement would actually mean less dilution going forward, Alan said two years ago it is time for a new sharing model, so where is it?). Sharing is absolutely necessary to move ahead as he states. Third conclusion: Being under the radar (to camouflage true value) and keep playing chess has not brought the wished result, time to change strategy and go for a deal with FN open-minded. In the end less costly and adding value to the proposition. How is RCF possibly going to maximise their return in view of an unchartered 2 century minelife, having much more in the ground than yet proven and dealing with an incredible amount of upcoming cashflow? Smeenk is doing the accounting for the entire project in the meantime, as well as the public and investor relations activities. Unseen, Unheard and totally Unprecedented. Well done again.