posted on
Jan 15, 2012 09:53PM
I think what is lost here is that a competent independent negotiator is simply gong to be comparing spreadsheets with Teck's spreadsheet and Cuu's spreadsheet. Every new repoted hole will be included, changing more of the resource from a general subjective estmate to a more specific estimate, so the price will likely go up with each new assay.
More importantly, although these spreadsheets will not be published, I am sure that if Teck tries to get too conservative in their estimates, there is always the threat that another bidder could be priovided with this information if the bidder is serious and negotiations bog down. Don't think that will happen, but the possibility exists. This means that Teck will be under some pressure to act quickly and to forget about posturing with lowball numbers.
Realistically, I would expect that, barring obvious errors in either Cuu's spreadsheet or Teck's spreadsheet that the numbers will all 3 be within 10% shortly after the feasability study is released.
rip