AUZ Chart, page-4198

Mate, you are proving my point. IRR is based on assumptions that may or may not be achieved. The original Sconi BFS is based on assumptions that nickel and cobalt prices will be far higher than they are currently, this is far from guaranteed.

If they generated a 15% post-tax IRR based on current cobalt and nickel prices, I would still be a holder of AUZ. The reality is, that they have had to make quite bullish assumptions in order to generate such a low IRR. I agree the headline IRR isnt the absolute key, it comes down to the assumptions underlying, and the underlying assumptions are far from a guarantee here... Thats my point.

If the IRR was far higher there would be a far larger buffer for the lender if the assumptions are not achieved.

I know price floors arent unheard of... However, negotiating a price floor significantly above current spot prices (aka BFS assumptions) is unheard of and hence I dont think it will happen.