RE: WOULD someone help me out here?VENMan:
"If you do the Math on AUA Proven and Proable Reserves they did not have the merits for $400 million US Financing! but today the price of Moly continues to move higher so those reserves having a higher street value now could get them $400 million.
AUA has to be clear on how much production and for how many years!
A few years ago, when i ran those numbers they did not merit
$400 million in funding because gross sales were 50% of the financing amount. They needed $400 million but gross sales only $200 million BACK THEN but that still did not stop a rally which took AUA shares from 60cents to $2.92 back then.
Moly MInes has the potential to do Gross Sales of over $1 billion which includes copper sales and will be looking for $750 million.
As long as moly price stay at $37.10CAD Moly Mines can continue to do $1 billion in sales over 25 to 30 years.
Moly Mines also has most of it's Moly In Probale and Proven Reserves which although AUA has some they needed way more in Reserves several years ago to obtain that Financing. AUA fell short on this account.
Also, when AUA completed it's BFS it did so without completing the permitting process. Which is Fine but when AUA went looking for $400 million they expected the Banks to take on the added risk. They wanted the Banks to take on that extra risk. Banks said no and AUA fell flat!
In the case of Moly Mines all permits are in place so when they..."
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Wow, there is so much misinformation in your post I practically must correct you one sentence at a time!
"Moly Mines has 600 million pounds of Moly Mearured and Indicated
By mid August they should move those resources to proven and probable reserves."
First off, Moly mines does not have a feasibility study YET, therefore, any guesses as to how much moly they have is PURE CONJECTURE.
"If you do the Math on AUA Proven and Proable Reserves they did not have the merits for $400 million US Financing! but today the price of Moly continues to move higher so those reserves having a higher street value now could get them $400 million.
AUA has to be clear on how much production and for how many years!
A few years ago, when i ran those numbers they did not merit
$400 million in funding because gross sales were 50% of the financing amount. They needed $400 million but gross sales only $200 million BACK THEN but...
These statements are ridiculous. AUA after coming out with their bankable feasibility using $20moly./lb and going down to the teens in the first five years came out with an IRR of about 30%+. In simple terms the mine paid for itself within 3 years, with 20 years of mine life minimum. To make the comment that lending $400 Million US to generate around $210 Million US in CF per year is silly to say. I can't think of any type of mine (with its feasibility study to prove it) that has an IRR of over 30%, can you? Not only that, but Adanac has $35 Moly now. The IRR is now insanely high and payback will be within two years.
"As long as moly price stay at $37.10CAD Moly Mines can continue to do $1 billion in sales over 25 to 30 years."
You are assuming $37 US Moly, when AUA's bankable feasibility assumed $20 and dropping into the teens over time. This is not an apples to apples comparison you are doing. Not only that, with moly that high, AUA can use a lower cut off grade like TCM is touting, and AUA's moly production will explode upwards, and so will their CF. Don't forget you can't claim $1 Billion in sales over 25-30 years UNTIL you have a bankable feasibility IN HAND.
"Also, when AUA completed it's BFS it did so without completing the permitting process. Which is Fine but when AUA went looking for $400 million they expected the Banks to take on the added risk. They wanted the Banks to take on that extra risk. Banks said no and AUA fell flat!
In the case of Moly Mines all permits are in place..."
You don't really believe what you just wrote do you? First off, Moly Mines has MINING LEASES (as does Adanac), DO NOT CONFUSE THIS WITH PERMITS TO BUILD. Adanac is about to receive those in two weeks and Moly mines may receive them in one year. Big difference!
Adanac is looking for the $400 or so Million now, and will get it easily. I'm not saying MOL won't get financing, but it is far behind is all.
This conversation is OVER. You are using false information and using incorrect comparisons in your argument. I said intelligent conversation only, not deceptive.
Thanks anyways,
x