TSXV:AAA.P - Post by User
Post by
Karmanowon Feb 11, 2011 2:57am
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Post# 18114470
What You Should Expect
What You Should ExpectWe can expect holes 9 and 10 to not be less than the closest holes to them. Farhad said that those that sold...will be shocked once they see the results for Hole #9 and Hole #10....
I project that these two holes will add over 250 million tons to the resource and define the 10 mile x 1 mile horizon of potash on the Haro Property.!!
We will find out shortly....
We know that hole #7 is west and the closest hole to the pending results for hole # 9
MEASURED INDICATED NET TONS INFERRED TONS
Hole #7 - 4.49M/Tons + 35.92M/Tons = 40.41 M/Tons X 23%KCL = 9.3 M/TonsKCL + ( 111.60 million tons Inferred)
We know that hole # 8 is south and the closest hole to the pending results for hole # 10
MEASURED INDICATED NET TONS INFERRED TONS
Hole #8 - 3.30M/Tons + 26.10M/Tons = 29.40 M/Tons X 23%KCL = 6.0 M/Tons KCL + ( 72.00 million tons Inferred)
In the recent Dundee Report their table at the bottom of page 5 outlines the future value of Allana's Potash Resource
by mine production:
At $485 per ton for KCL (50% SOP and 50% MOP)
1 million tons production = $ 2.98 per share
2 million tons production = $ 7.22 per share
3 million tons production = $11.50 per share
If Ercosplans Resource Report due in April/May supports Allana mining 3 million tons per year well...
look above and see what Dundee says AAA is worth...
3 million tons production x 21% KCL = 630,000 tons of KCL x $300 per ton net = $189 million / 150 million shares =.$1.26 EPS x 20 times forward earnings per share or PE (industry norm) =
$25.20 per share AAA once in full production.
Now you can see why a Major Company would be willing to pay $4.00 per share for AAA and a 100% premium for AAA shares as they know the real value is in the forward cash flow and more than 6 times higher than the price they would pay to take AAA out !