Comet Ridge was acquired by BCB in October 2017 for $350,000 in...

Comet Ridge was acquired by BCB in October 2017 for $350,000 in cash and issue of  17.394304M BCB shares - subject to 12 month escrow period (current shares value at 1.5c = just under $260,915).  So total acquisition cost excluding costs of any share issue around $610,915, with some overhead cots say $615k.

Note that in BDO valuation released 6th April by BCB Comet Ridge valued the asset at A$0.9 - 1.6M with a preferred value of A$1.3M.

Project has been onsold for cash option payment $100,000 now with either the royalty stream on initial 2.8 Mt salable (my estimate A$1.89M or A$0.67/saleable tonne - supporting calcs per below) or SCC royalty buyout option A$3.00M (which based on previous estimate I would not expect to occur).  If SCC proceed to develop Springsure Creek then the potential deal outcome will be a +A$1.375 - 2.49M outcome for BCB.  However against the BDO valuation (using the preferred valuation) the overall outcome would be +A$0.69 - 1.8M outcome for BCB.

Should SCC not develop Springsure Creek in the 4 year period then BCB can reacquire the asset by paying SCC costs of exploration and studies (I assume that BCB has also offloaded the tenure rent and annual EA fee so they are cost free for up to 4 years on Comet Ridge) PLUS gain access rights to 350ktpa of any rail loadout capacity developed by SCC - noting that if SCC does not develop such infrastructure then there is no value in this.  Note that if this scenario occurs (no development by SCC in 4 years, no rail loadout infrastructure development) and BCB determines they don't want to buy back Comet Ridge then the overall position on the deal will be a loss of around A$515,000. However against the BDO valuation (using the preferred valuation) the overall outcome would be -A$0.385 - 1.085M outcome.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	Royalty Value Estimate		KPMG Mar/Apr 2018	2022	Forecast Price / Forex
1					$71.40	US$/t average
2					0.78	A$/US$ average
3
4				FOB	$91.54	A$/ saleable t
5	2,800,000	Mt prdn
6	$53.91	A$ FOR / saleable t		Rail	$14.00	A$/ saleable t
7	1.25%	Royalty on FOR value		Port	$15.00	A$/ saleable t
8				Royalty @ 7%	$4.58	A$/ saleable t
9	$1,886,904	Royalty Value		Marketing/Demurrage	$2.00	A$/ saleable t
10	$0.67	$/saleable t effective		ACARP Levy	$0.05	A$/ saleable t
11				Corporate Overhead	$2.00	A$/ saleable t
12
13				FOR	$53.91	A$/ saleable t