Nice write up Adrian. Using nowadays rutile px + new one phased approach gets you to a materially higher NPV. Just further highlights the opportunity here. Worth mentioning that the $300m NPV uses an 8% cost of capital. Using a 12% cost of capital assuming $1,200 px and 2 phase approach gets you to $65m ish. Still, opportunity is clearly there.
Equity grants to CEO and CFO with vesting dates upon Sembehun commissioning and financing decision really incentivizes them to do this quickly too. I don’t really see this as a liquidation, but a financing decision including a JV, selling equity, etc. should do wonders to the stock price. New Tax amendment should also remove some uncertainty. This is a key employer for Sierra Leone. Hopefully they can reach a mutually beneficial arrangement.
Nice write up Adrian. Using nowadays rutile px + new one phased approach gets you to a materially higher NPV. Just further highlights the opportunity here. Worth mentioning that the $300m NPV uses an 8% cost of capital. Using a 12% cost of capital assuming $1,200 px and 2 phase approach gets you to $65m ish. Still, opportunity is clearly there.
Equity grants to CEO and CFO with vesting dates upon Sembehun commissioning and financing decision really incentivizes them to do this quickly too. I don’t really see this as a liquidation, but a financing decision including a JV, selling equity, etc. should do wonders to the stock price. New Tax amendment should also remove some uncertainty. This is a key employer for Sierra Leone. Hopefully they can reach a mutually beneficial arrangement.
I'm the opposite to Shravan. I follow Samuel Terry, was researching their investment in Sierra Rutile and found this blog. Great write-up!
Well researched and analyzed. Thanks for introducing me to Samuel terry.
P s you are now up one subscriber 👍