GREY:KXLAF - Post by User
Post by
red911on Apr 28, 2011 3:00pm
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Post# 18502337
Churning through paper...
Churning through paper...In the absence of news we are churning through some paper here but thatis normal until the next breakout which may take us near or above $1 IMO. Like support/strength at these levels.
Would not be surprised to see coverage from a few more houses in the weeks ahead as well.
According to the PEA...
At $1,000 POG: NPV (5%) = $351-million (IRR = 49% and payback period of 1.8 years)
At $1,300 POG: NPV (5%) = $691-million [i.e. +$340M or almost double] (IRR = 80%)
Therefore... my estimates...
At $1,500 POG: NPV (5%) = ~$1 billion and IRR = ~>100% ???
Point is... increases in POG add to project economics significantly... almost exponentially... costs are not increasing... revenues are. The kicker here is... THIS IS ONLY WITH EXISTING KNOWN RESOURCE... it is almost guaranteed the resource will continue to grow.
red911