HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Re: Approx. value per Ton of Eagle.
8
Jul 21, 2010 09:58AM

I think that sounds about right, however taxes and time value of money can be a real PINA...

1. If your 4.5B pure profit is broken up as follows: (annual amounts in Millions):

0, 0, 0, 0, 0, 100, 200, 300, 400, 500, 500, 500, 500, 500, 500, 500

2. CAPEX spread evenly over the first 3 years is 800M (no idea what this number would actually be)

3. Taxes are 35% (probably not a good assumption either)

4. and the company with the takeout offer wants a 20% return on their investment...

Eagle 1 is worth about 10cents / share ...

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