TSXV:AAA.P - Post by User
Post by
stocktaon Sep 22, 2010 2:59pm
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Post# 17480130
Do the math...
Do the math...If you are thinking that the entire property of AAA (100 square kilometers) should hold at least 45 meters of 20% KCI then you would have approximately 700 Million Tonnes of Recoverable Potash which equates to about $140 Billion in total property value given a conservative after tax cash flow of $200/tonne. This would be an elephant x 1000 and be inthe POT range for reserves.
As it sits, if we average 10% KCI over only 25 square kilometers (only a portion of the entire property and we know other parts of the property averaged higher grades and widths) at 25 feet widths we would get about 50 Million tonnes of recoverable potash which would equate to $10 Billion Dollar Property Value. This would likely translate into a share price given dilution up to 200M shares of about $30 per share using a 15 P/E ratio for the industry. Pretty good I would say even with the perceived "inadequacy" of the lastest drill results.