RE: NO FUTURE FOR YOU
The truth my dear oceans is that not one of the wpx pumpers ever wants to talk/mention any facts about wpx.
why is that? If is because the facts scare the life out of them. The high build costs are something they never want to discuss. They live in a world where words like "hope" and "maybe" are more valuable then gold and silver.
bringing up figures makes them scared and angry and they never ever respond with facts . And the only figures they allow to be discussed are ones about Indian companies run by people with no sense that want to gift $1 billion to wpx for a small portion of the mine.
Here on the AAA board(as well as on krn board) everybody generally loves figures. The figures make posters feel warm and fuzzy inside. The reason why is the figures actually stack up and make a lot of sense financially.
would aaa raising 200 million in equity be out of the question. Hardly! And very doable with a rising share price.
what about a consortium of banks lending aaa 600 million for construction? Very reasonable indeed. Not a huge amount of risk for say 8 banks to lend 75 million each.
Then when you look At the say 400 million in sales every year(at 1 million tons) its not hard to work out that they could easily put 230 million or so every year towards further increase/ramp up to higher production of say 3 million tons with out haveing to take on additional debt.
mmmh. I'm starting to feel warm and fuzzy just thinking about it and I'd imagine that many executives at some major banks might feel the same.
but when u consider the $3.3 billion needed to get the first Ton out of the ground over at milestone it becomes very scary. Raising 800 million in equity(with an $86 millions market cap) screams of shareholder equity being wiped out. $2.5 billion to be lent by a consortium of banks to a company being run by guys that have zero experience building/running potash solution mines makes me very afraid. I can imagine it being a dark night with plenty of extremely loud thunder and lightening and some Bank executives hiding under the blankets(think young Frankenstein) saying " how will we tell them we can't raise that kind of money, it's just way to much to give a junior company run by diamond experts that have no experience solution mining potash". I'm scared!
but on a beautiful sunny day in another part of the world bank executives are running through a lush green meadow(think little house on the prairie) smiling and saying to one another "hey isn't it great that we only need to lend aaa about 4 times LESS MONEY(600 million)to build their mine than wpx's needs"? And then the other bank executive smiles and says "yes, it's amazing and we only have to lend Karnalyte 6 times LESS MONEY (400 million)than wpx" .
Then as they run down the hill smiling and happy together cos they made such a great deal.
I feel warm and fuzzy. The figures for Karnalyte and allana are so comforting. It's like being tucked into bed with beside a tickle me Elmo and the Cookie Monster .