GREY:AXXDF - Post by User
Comment by
RBCHY7on Mar 22, 2011 2:46pm
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Post# 18323100
RE: RE: RE: THAT WAS NOV!
RE: RE: RE: THAT WAS NOV!I do agree $1billion is conservative...this should be minimum target for the stock 2013-14.
For CLM, i believe Bloom Lake was 900MT that will produce 8 - 16 MT for 30 years (not sure where ADV will come in). But, CLM also owned two other properties they bought in 2008) that may have another 900 MT (about 50km away from Bloom Lake). Could be 1,800MT total. The $5 billion was for all properties, plus infrastructure they built (rails, ports) and some debt they owed (plus big takeover premium). Not sure if ADV will see $4billion one day...but hopefully north of $1billion for sure.
ADV will also have higher costs the CLM as they would use other companies rails and ports (which is why they will probably just be bought by one of these compaines - Cliffs make sense as they now own mines on either side).
ADV is cheap and they will have a long list of financiers to choose from this summer. Hope they do not dilute stock going forward...exchange $ for future iron ore production...same as CLM.