Takeover Target for PPI & AAA Compare to Potash OnTakeover Target for PPI & AAA Compare to Potash One ( KCL) - --2011/02/14
From older post :
“ The Potash One Feasibility study (prepared by SNC Lavalin) concluded that the mine could produce 2.86 milion tons of potash every year for a minimun of 47 years. The total extracted would then be 134.42 million tonnes of potash. The total fully diluted number of share is 96,529,429. And you know that the takeover price was $4.50 / share.”
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So they received $4.50 x 96,529,429 Shares = $ 434,382,430 for 134,420,000T that will be extract in the soil.--------------à500 m deep—28% Grade, before 6% lost.
That`s give a TARGET OVER PRICE OF $ 3.23 / Ton of in situ Potash for KCL
I remake my precedent valuation (with new numbers - after new today)
Valuation of AAA shares: 300 M T min. and 150 M shares. Grade of 24% à100m - 200 m deep
Plus or minus value in comparaison with KCL
1) GRADE: $3.23 x 24% (AAA grade) / 28% (KCL grade) = $2.76 / TM-----------à MINUS $ 0.47/ T
2) BUILT A MINE: $3.23 x $2.5B (KCL) / $1B (AAA) = $9.07/ TM-----------------à PLUS $ 5.84/T
3) OPÉRATION COST: $3.23 x $111 / T (KCL) / $60 / T (AAA)= $5.95 /TM---à PLUS $ 2.72/T
TOTAL PLUS & MINUS = $ 8.09 / T
AAA--Value of Takeover Target price Share today; = ($8.09+$3.23) x 300 M T / 150 M shares = $ 22.64 / Share
THAT'S SOUND INCREDIBLE BUT THAT'S THE NUMBER I GET.
I don't beleive it myself !!!!!????---Take 60% of this if you dont' like the contry .--- +/- $ 14.00 is a good bet.
(we work presently in Mauritania (Guelp 2) and no Problemo..it is very hot 35-45 celsius
Just for you Shareholders and do your own DD , Dont' worry to corect me if i am wrong
cote101