RE: RE: RE: RE: RE: hidden order was in play ICEBE
fullhouse101 said:
Is $6 million a fair market cap? Guess we are near the bottom.
I would appreciate it if you (and tickle1st too, honest, I like the guy) could sequentially knock holes in each of the points below, which I took down back when I was first looking into this stock.
- $5M market cap, 10 cent shares, 62M shares fully diluted including recent warrants at 10 cents
- Shakespeare mine – at 500 tpd, cash flow of $1.2M/yr at $8/lb Ni
- $67M after-tax NPV at $7.50/lb Ni in feasibility study
- near surface open-pit to start
- fully permitted, smelter contract in place
- average production per year Ni 7M lbs, Cu 10M lbs
- resume mining in Shakespeare – startup was 24 Feb 2010, aiming for 200kt/y
- can take a few months to get paid by the smelter after they ship the ore – so they needed to do some financing, thus the recent warrants
- at $8.50/lb Ni and $3.10/lb Cu, positive cashflow is $2.5M
- Mar 5: Nickel is $10/lb, Cu is $3.40
- Vale Inco strike has taken 6% of the world’s nickel off the market and raised prices
- Need Ni price over $7/lb to keep the mine open
- Building a cash reserve – hope to net approx. $4m this year
- First payments from Shakespeare ore should come by end of March
Expect 2010 Shakespeare production to produce 1.1M lbs Ni, 1.7M lbs Cu, 56k lbs Cobalt
- at $9 Ni, $3 Cu and $15 Co, that’s $15M gross