OTCPK:ARNBF - Post by User
Comment by
brendellyon Jan 23, 2012 6:23pm
251 Views
Post# 19439025
RE: RE: brendelly
RE: RE: brendelly Tie the books all the way back to Q1 2011 for Midway and you will see a total expenditure of $~20 million land acquisition and the amount of land picked up was around 23 sections ($3400/ha.) this does not include the other 13 sections they already had. The production from MEL lands is not great so neglecting production the total land value is $3900/ha. Total land package average 36 sections from previous lands purchased was around $2500/ha. So in the eyes of MEL getting their land value back and a little more while having a 50% interest holder to carry some capital cost was the best deal they could come up with.
The land package ARN holds is continuous and productive so you can draw a line that $3900/ha is a base figure. That is something that neither pumps or negates ARN's position.