last chance under $1?, page-48

Interesting they also forecast a NPV of $985m on a higher spot price. This would increase their valuation based on a 0.7 or 0.8 times NP Value basis. They then also state there is a potential NPV gain of $340 to $425m based on extending the life of mine. This would potentially increase the NPV (based on a spot price valuation) to around $1.4b.

Now this all sounds great but it can be better than that, as they haven't stated any allowance for the value (potential or otherwise) for SFX other exploration assets. Thus a potential further premium would have to be added to any valuation.

My final comment is Blue Ocean seem to ignore a further possibility of funding stage 2 and that is not issuing any shares or selling down part of the asset but self funding through debt. With such a high net cash flow projected they could afford to do this and we would not see any dilution impact on the share price.

IMO Blue Ocean are too conservative...time will tell!