RE:RE:RE:Up to C$98.04 Net Present Value Per Share ( Plant 3 Expansio
rodrabal wrote: With there 3 million ton capacity they have now. The NPV should be approximately about 1/3 the price of the 10 million tons,with the plant 3 expansion. So that would work out to be approximately $30-33 dollars per share. This is based on there $368.00 base price per ton divided by there 52 million shares. Which is way under the price per ton potash is going for now. Now they need to produce and sell potash this year. I think they will get pretty close to it in my own personal opinion. They like to underestimate and hope to over perform.
That is inaccurate. The economics of plant 3 are radically improved over the combination of plant 1 and 2. A scaled up plant 3 will be far more economically efficient than the current 3Mt plant 1 & 2 production capacity allows . You must also factor in the long term delivery cost per ton expenses in their PFS and consider how much higher delivery per ton is running right now. I wonder if that PFS projection was extremely optimistic or if they expect far better consolidation opportunities amongst trucking and fuel costs with a far larger operation. For now, 628Kt or barely 100Kt of KCl equivalent is peanuts and Verde really just doesn't have pricing power from customers to vendors.