GREY:MLKKF - Post by User
Comment by
24~Karaton May 07, 2006 10:06am
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Post# 10807481
RE: Evaluations
RE: EvaluationsCited below is the typical production decline curve for oil and gas production. (These statistics were gathered a long time ago, but nothing has changed to prolong the productive life of an oil or gas well.)
What is really incredible here, is that this typical 5x cash flow is based upon an exceedingly short productive life span of that asset. Mineral Park, on the other hand,
has a 40-year productive life ahead of it, with a production curve that
does not go down.
(Actually, during the recent audio presentation, company president Mike Surratt favorably compared the Mineral Park mine to the Bagdad and Sieretta mines owned by Phelps Dodge, and remarked that these mines may produce for 100 years!)
So, the truth of the matter is that Mineral Park mine should be accorded a much higher cash flow multiple than a typical oil and gas company.