Long Term ValuationOnelifetolive; I respond to your earlier post in reference to my stated “optimism” for the near term for Allana and the near term milestones which I believe are underway as we speak.
“I try to maintain objectivity when it comes to AAA or any other investment”
From someone that has experience in reviewing current data, assessing industry comparables and then applying a valuation on a company or its assets…I wonder if you would “objectively” apply a valuation on Allana? Utilizing its current resource estimate Measured and Indicated Tons…and further applying a logical valuation with an Off-take Agreement signed and in place for 50% of the $900 million capex required and paid back in full by a $150 discount per ton.
Further, extend the valuation to include signed Secured Long Term Debt Financing for the remaining 50% of capex required for Mine and Processing Plant and site Infrastructures. Please use your choice of matrix or formula that is reliable and can validate your valuation assumptions. EPS, Free Cash Flow,
NOI / Enterprise Value, NAV. The Dundee Report has applied a valuation, formula and target share price for point of reference.
I ask that you be as conservative as possible, using solution mining with a 35% recoverable rate and operating costs of $150 per ton. You may choose to expand on hole 20 from the Eastern Shoreline and apply similar expected results from the Kainitite Layer for holes 21,22,and 23. And apply some element of increase to the Measured and Indicated with the 6 In-Fill drill holes in the southwest as recommended by Ercosplan. I did believe that positive results in the East would move our share price higher, but as stated by others, we have enough potash in the southwest and northeast for mining purposes.
I do not agree that other savvy investors have baked in a signed Off-take or J/V or signed off Long Term Debt Financing. They want to see the ink on the document….and some want the BFS completed..
I believe from hearing that Farhad is overseas for Critical Meetings….should lead you to understand or expand on why he is there? I believe that he fully understands what the “market” or large funds require to invest into AAA as a company that not only “has the goods” to go to production…but also has the “paper” in hand to support and finance his goals. My estimate of one months time still stands, as he is both motivated and brilliant at making the “deals” happen…Remember Liberty Metals and the IFC World Bank Member?...they came out of the blue…after they completed their due diligence on AAA. Whether investors will be laughing…is yet to be seen.
I can see from your posts that you have invested your hard earned money in AAA and know you wish Farhad success on his current journey on our behalf!
Look forward to your valuation(s) or anyone else that takes the time to do the work and to post.
Karma