RE: RE: RE: News - Coverage!! - link That certainly was a lot of information in that report. You gotta read carefully though just to see how conservative their estimates were.
The NPV in that report is only based on a M&I resource of 137 million tonnes. According to my map and research, we will be significantly over that amount by the time the updated resource estimate is released. We should be much closer to 176 million tonnes, according to my maps and research.
176 million tonnes x 17.31 per tonne = 3,046 millon for NPV with updated resource
3,046 divided by 322 million shares = $9.46 per share x adjusted factor of 0.08 (see analyst report) = .75 per share for a target price with the updated resource. Also keep in mind that this is also entirely based on potash selling for $450 per ton.
Now, here's where it gets more interesting. Assuming Encanto drills 2 more holes and that the average hole to date has netted about 25 million tons, the two new holes would bring the resource estimate to 226 million tonnes. That divides out to $12.15 per share. Adjusting at 0.08 equals 0.97 per share target price, and, if we are close to being done with feasability by this time and use an adjusting factor of 0.10, we have a target price of 1.21 per share.
Starting to look nice.
srpat