North American Tungsten Corporation Ltd NATUF

RE: RE: N.A. Tungsten earns $4.92-mill

[lurkerone]

Hi Telemarker.

I have to dissagree with you on $400MM capex geing a huge hurdle.  Every new mine has a capex to deal with.  Look at the IRR and payback period.  Payback in under 3 years of that $400Million.  That makes for a VERY GOOD RETURN for someone offering debt financing.  They could probably finance up to 80% via debt.  A JV partner coming in at the financing stage could pay $80MM for say 35% of the project.  That gives 100% of the equity portion of capex with the remaining $320MM done via debt finance.  I would be very happy with NTC sitting on 65% of the project at production.....    They are going to have to issue equity before then to cover more work to get Macting a bit closer to the financing stage but with Cantung now profitable, that will help finance some of that development work.

All said if NTC can get Mactung producing in about 4 years and can get there with under 175MM shares OS they will be sitting good.  Even with 65% ownership they will be looking at about $85MM per year profit with prices where they are.   Realistic EPS valuation of about 6X would give a shareprice of about $2.90/share.  Thats a far cry from the current price.  That also doesn't inclued the value added business from the Tundra JV producing tungsten composites, APT, etc.......  which i think is going to be very significant going forward (just look at what portion of Q1 revenues came from the Tundra JV and they are just getting started)

$400MM is not a problem with the economics of this deposit.

All my own opinion.

lurk.