Re: I own shares of Not---but no but

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)

Reply New Message

Prev Message Back To Forum Threaded View Next Message

goFWR

Rank: Treasurer [?]

Points: 523 [?]

Votes: 47 Score: 2.6 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Re: I own shares of Not---but no but

in response to

Re: I own shares of Not---but no but

Gerwin

posted on Dec 02, 2010 04:21PM

1. NPV does not equal Money in the Bank - you need Money to build the mine.

2. How are you going to get money to build the mine:

a) issue more shares

b) get a loan - see step list for getting a loan:

step1: decide to get loan

step 2: determine collateral. Hmm I have this paper that a few guys wrote that says our mine is worth 540M, after the update in resource prices it's more like 1B in NPV.

step 2b: contemplate how we could possible have collateral of 1B but only have a MktCap of 200M.

step 2c: realize we only have a bit of collateral.

step 3: go to a bank and ask for 500M loan with less than 200M collateral and no way to pay them back if things go bad