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Erdene Resource Development Corp T.ERD

Alternate Symbol(s):  ERDCF

Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition, exploration and development of precious and base metals in underexplored and highly prospective Mongolia. It has interests in three mining licenses and an exploration license in Southwest Mongolia. Its projects include Khundii Minerals District, Bayan Khundii Gold Project, Altan Nar, Greater Dark Horse, Ulaan, Zuun Mod and Khuvyn Khar. Its projects are located in the eastern portion of the Central Asian Orogenic belt. The Bayan Khundii mining license covers 2,309 hectares and, in addition to the Bayan Khundii high-grade gold deposit, includes its highly prospective 20 square kilometers greater Dark Horse prospect area, including the Dark Horse Mane high-grade gold discovery. The Zuun Mod Molybdenum-Copper Project is a porphyry molybdenum-copper deposit. The Altan Nar mining license covers 4,669 hectares. The central and northern portion of the Ulaan license hosts a porphyry copper prospect.


TSX:ERD - Post by User

Post by cupricityon Dec 12, 2010 8:47pm
464 Views
Post# 17836246

In Conclusion of 5 squared

In Conclusion of 5 squared
PEA looks at mining 100 million tonnes of coal.  There is 480 million tonnes of coal at donking in 4101 compliant resources.
PEA looks at selling the coal and recieving $51/tonne. NPV of 200 million= 25% ERD or 50 million.
PEA gives costs of $23/ tonne
 Total cash costs for coal  production, transportation to the port and loading into the ocean-going vessel, and royalties are estimated to be $23.13/tonne. 




So in reviewing these numbers I come to the inevitable conclusion That there if 5 times the resources.  And we will have at least 5 times the net profit.  Ie $220/ tonne for our 75% met coal vs $51 is $170 more so $25/ profit from the PEA times 5 is $125.  That ought to be safe.
 200 million NPV 10% after tax times 25%to ERD is 50 million. 50 million times 25 is?  Wait for it! 1.25 billion.  Lets say the market gives us 20% of that value of 10% discount after tax.  300 million.  ERD share price= $3.25.
    Stick around folks. No such thing as a sure thing.  But this one looks a lot less risky than mining in Mongolia. Or oil in Iraq.
   Disclaimer: I own ERD and some oil plays in Iraq.


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