GREY:MAAFF - Post by User
Comment by
stocktaon Sep 10, 2009 2:45pm
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Post# 16294383
RE: RE: RE: RE: MAA Valuation without potash
RE: RE: RE: RE: MAA Valuation without potashNo real reference but a guesstimate considering the following
Debt financing = $920,000,000 x 10% = $92M per year (Chinese investment $280M + $920M = $1.2B)
Other fixed costs = $108M per year
Total = 200,000,000/year
I thought I was being conservative with $200M in fixed costs but maybe it should be more??? For every 50M in annual fixed costs we deduct about $1 from per share price. However I was very conservative on price per tonne of potash at $500 as in the long run this is headed for $1,000 and beyond.