Ridge's directors are buying!

Putting an accurate value on Sheba's Ridge before completing the BFS is fraught with difficulty. I guess you could make the case that the IDC deal provides a baseline. At the other extreme you could use the forecast net annual cashflow of $250m+ (current metal prices and exchange rates) as a basis for a valuation. Frankly I find either approach pointless.

The deal with IDC is simple. They said they will fund the BFS (estimated at R60m) and wanted 26% in return. The deal was never negotiable. IDC need Sheba's Ridge for the proposed independent metals complex. RDG need the complex to reduce capex and improve overall returns. I doubt IDC will hold onto their stake once Sheba's Ridge is up and running. They're a development organisation and will probably pass it on to a BEE group. After all their mandate is to stimulate black empowered economic development.