Fortress Global Enterprises Inc - Class A FTPLF

RE: Regular Pulp Prices are Still Rising

[Nighthawk40]

Interesting post.

With the high demand for DP, there is indeed a unique possibility of a competitor wanting to purchase FTP for the Thurso mIll asset alone.

I believe a similar mill in Sweden was sold for approx. $340 million US this year. If my notes are correct, it didn't have a co-generation facility, a bio-refinery income stream or a 5 and 10 year supply contracts with China.

I'm not sure of the $800 million to $ 1 Billion selling price. Perhaps $400 to $450 million might be more realistic. New mills cost approx. 1 billion to construct.

Regardless, there is no disputing the fact that FTP will reap significant profits if it sells the Thurso Mill after the DP conversion.

A second DP acquisition in the 3rd or 4th quarter of this year might spark additional interest from hungry DP competitors.

For the right price, Chad will sell. If that happens, shareholders will be rewarded.

That's one of the benefits of having a smart CEO that owns over 16% of the outstanding shares.

Have a good day all.