GREY:ADEXF - Post by User
Comment by
HVAN1on Nov 16, 2012 2:52pm
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Post# 20611286
RE: RE: Q&A with the AXI investor
RE: RE: Q&A with the AXI investor Forget the stock price, that's not the issue. Even if the AXI stock price were one penny if the Chinese partnership was signed, sealed and funded, and if the feasibility study tagged a $3 billion NPV and 30% IRR to Roche Bay, it would make sense to remain invested in AXI. If the fundamentals are good the stock may survive a bad market.
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But the fundamentals are undeniably bad for AXI. Their "partner" absolutely refuses to abide by their original agreement to fund Roche Bay to production. They haven't even paid for Roche Bay's feasibility study. The long-delayed feasibility study shows the worst NPV and IRR numbers of any iron ore project on the planet. No other project is even close. If that's not a fact then show me the numbers.
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Whatever happens to ADV's stock price the fundamentals remain the same. Their Chinese JV agreement is signed and funded. Their feasibility study will show a multi-billion NPV. (If the Kami feasibility study ends up at $642 million NPV, then the investment wouldn't make sense anymore. I will be consistent.)