One doesn't need a complex formula, just a couple of simple facts. CLF orebody is such that it would not be feasible to high grade it. They would have to take a lot of the lower grade ore along with the good stuff, in order to properly mine it. Their average grade would likely be in the 34-35%.

They intend to mine 7.5B worth of minerals in the first 5 years of mine life. Assuming they can do this profitably with 35% ore, and realize a 10% profit, then the higher grade has a tremendous effect on the bottom line.

In a nutshell, if they can mine 7.5b worth of 35% ore and realize 750m profit, then the same amount of 40% ore will gross them 8.57b and net them 1.82b or in other words increase their profit by 143%.

Based on the above CLF can increase their net by 1.071b in the first 5 years by mining Big daddy first. If they bought out SPQ/KWG based simply on that basis, SPQ portion would be .47/share.

Best regards

K