RE: Weekend Questions?I found this post by venturevest interesting .. (back Nov.11/2010)
It reads as follows:
I messed that up.....
I wrote "Thus kwg @ .19 would equal about $125 million of about $3.00 / tonne"
This is way low as KWG has only 26.5% of the 40 million tonnnes or equivilant to about 10 million tonnes.
This is where the $12.50 / tonne was derived.... I stand corrected
Thus at a current resource of 8.4 MM tonnes Prb should have a chromite value alone now at about $100,000,000
The revised resource will come in somewhere between a minimum of 15 and 25 MM tonnes
So if Cliffs pays the same value / tonne.... PRB is in big bucks... should be very interesting.
Queston is.... does Dave present to Cliffs for an initial offer with a minimum price...... or does he shop this arround.
The valueation / tonne will certainly support a huge price... but is Cliffs willing to pay up front for it....
This is why Cliffs did not chase after KWG.... it would simply set a higher price for the Chromite.... as Cliffs can move ahead without KWG, but they need PRB to make the whole project more efficent.... Without buying out PRB, Cliffs will have a higher capex pre production and have to leave some resources in the ground.... With PRB they have the outcrop and better open pit utalization.
I think we are looking at a minimum of 100MM and possibly an upside of 200 MM.... If there is another interested party... its game on.... but it certainly won't be chump change.
Sorry for the low ball in the past post.... forgot to take only 26% of the 40 MM Tonnes
Very interesting!
Then there are the additional projects...... Maybe Dave does a PP and finances the Borden lake from a PP
He could likely do a $2.00 pp unit..... 1 share and 1/2 wt @$3.00... He could raise $5 million here very easily with minimal dilution.... I would bet that liffs would take the whole thing down right now... This would put them just under the 10% holder . This could fund the breakup of the company into 2 components.... the chromite.... and the gold plays.
JMHO
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