RE: RE: re: Perspective dr_airtime, I for one am happy enough for reading your point of view. One must not think that a point of view different than their own is somehow bashing. It gives time for reflection as to the strength of one's own understanding. That said, it is always difficult know what value to place on a company that is not producing any revenue, especially in circumstances where we do not even know the offtake discount terms. I do know the offtake is based on some sliding scale with the tipping point being 350--when the price is less than 350, the discount will decrease and when the price of the powder is greater than 350, the discounted amount will increase. What I don't know is what the discount rate at 350 is--although I have good reason to speculate it is something less than the standard 7% given the sliding scale is being applied.
As I say, when there is no revenue, NPV is the best method of understanding value, but it is far from perfect. For example, with the earlier study, it was at a time when Woulfe had a $400.3m NPV at 8%, with a 46% IRR (possible payback in 2.2 years). The Nov 6, 2012 N/R recognized the lower Opex and fixed a $535.2m NPV at 8% and a 65.6% IRR. You make a good point that with that older report showing 46%IRR, the annual net revenue of $68.77m was after Opex but before IMC took their 25% for the Scheelite concentrate and 55% for the APT. However, those old numbers were based on a much lower NPV and IRR. My play is into production and I do not see how the s/p will be under $1 at the time of production, given the low Opex. Also, many are assuming the bank loan will be for $150m but I do not think that is correct. The line of credit for the loan can be up to $150, but the actual Capex will be low enough that no where near the $150m will be used. No doubt penny stock are not for the faint of heart, but I have my money on Woulfe because after doing my dd, I believe it is a winner. Time will tell if I am right or wrong. Your critical current view of Woulfe is welcomed by me, but I do not agree with your conclusion and I have put my money on it.