Developing phosphate interests in the Georgina Basin, Queensland, Australia

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Message: $1.4 Billion

Are we really paying $1 for a value of $10 - $15?

So has anyone looked at the feasibility numbers in detail? I guess the market believes we really only have 5 million tons of high grade (33%) rock that is recoverable since we're at 1/10 the estimated value today.

The study is claiming we have 55 million tons of high grade recoverable rock and calculates the value today (NPV) of these assets (taking into account the operating costs: needed loans/funding, production costs, etc) at $1.4 billion - $3.1 B. This is over 10 times greater the current market value of $180 million.

Either that or the market believes we have only a fraction of the claimed 50% margins and 27% rate of return. This would mean the market doesn't believe the aluminum fluoride sideproject to be feasable, and the market believes energy prices will increase as phophsate prices will decrease over the 30 years+ mine lifetime.

If we really have 55 m tons of easily recoverable rock and asset prices keep rising, the company could be run by 5th graders. So in the end, the question is, do we really have that much that is recoverable.

I want the company to not sell the assets but to keep majority interest in the assets. If they plan on announcing an outright sale, someone please point me towards another junior fertilizer miner.


Apr 11, 2011 08:52AM
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Apr 11, 2011 10:05AM

Apr 11, 2011 11:22AM

Apr 11, 2011 04:10PM
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