Discussion Points, page-3

good spotting. i picked up that same statement in KPLs quarterly and i agree with your sentiments regarding it.

the impurities really are not an issue. they might add marginal opex through reagents and a bit of capex to put the amine tower in the process, but this is all about end markets when valuing the resource. the market currently says zero, but as you are suggesting, this is a strategic tcf here and those that take the risk on the perception of value will make the money. even if this starts to get valued at heavy discount, we are so leveraged to the valuation, its not funny

PNG has the best fiscal terms in SE Asia, and the big drawback of PNG is the terrain and perhaps the social dynamic in some parts. being in shallow offshore gets you away from that, so you really are in the best spot.

the important thing is the value at which an industry transaction will take place vs the market cap. that's where the big gap is. recall santos dropping 32M upfront, possibly up to 40M for 50% of NGE's highlands block. sure, there are structures up there, but its expensive work. i'm not suggesting they'll come and buy more at Pandora, but the point is, if someone wanted cotts 40%, and paid say 50M for it in some sort of staged approach, then that's multiples of cotts MC, even after you factor in the IES stuff.

they just need to hang in there with their cash burn. geez i'd be happy if they could farm down their onshore. even for proportionate forward carry and a few mil in back costs. a few mil will go a long way with these guys.