GREY:DULMF - Post by User
Post by
DearBear6on Mar 06, 2013 12:13pm
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Post# 21087640
Im buying the drop
Im buying the drop Polymet is now worth the same or more than Duluth Metals. I'm not convinced that Duluth Metals' stock will appreciate for much in the next couple of years. There is also the possibility that copper falls and Duluth Metals stock gets devastated. But I don't think deflation is likely considering Ben Bernanke and future Fed Chairmen. However, with copper staying at $1.75 a pound over 20 years, Duluth metals base estimate puts it at a $6b(x 60% ownership) cash flow 10-15 years into production. And if Duluth Metals dilutes shares by increasing the share count to 500 million shares, then that implies market cap $3.6b/500m and a share price $7.2 a share. That is a worst case scenario with stock dilution, giving it a 1.0 price/book value, discounting new discoveries outside the JV project and mining those reserves, and discounting higher copper prices. The company may have to screw up big time for that scenario to happen and China would have had to dump their copper(which is possible). I have no idea what range this stock will be in for the next 5 years, no idea at all!!!
I bought more at $2.24, $2, $1.9, $1.76, soon to buy at $1.55 and below. I am 26 yrs old.