GREY:MLKKF - Post by User
Post by
24~Karaton Apr 15, 2006 3:05pm
371 Views
Post# 10679294
$200 Million Windfall
$200 Million WindfallSummarizing, the most important point made by ML in their audio presentation:
Placing a 30 to 40 ton per day mill into operation typically requires a capital cost of $300 million. But, because Mercator has all of the infrastructure in place, and has already purchased the mill at the giveaway price of six million dollars, their cost is going to be less than $100 million. That is a $200 million windfall.
That amount of equity, when calculated against the number of shares that are outstanding, equals C$3.56 per share. Since buyers are currently paying only $2.50, they are getting everything else for free--1.6 million pounds of copper, 480 million pounds of moly, and 40 million ounces of silver.