RE:Gold Investment Letter - ZEN buyout target"$16 puts us just under a billion valuation but I'd guess the end result will be a higher price tag than that." slopman
One Billion is a nice round number and a long way from todays sell-off pricing of shares at $3.60...
Is the One Billion figure just?, if you consider for a moment, that if Zen or any other Producer gets 100K end product/yr for$10 - $20k/t, less all in costs $600/t or even at the high end $1000/t. A Billion+ a year for how many years. Seems at a minimum East and West pipes could range up to 60MT's.
A $1 Billion valuation at $16/share is much better than the $3.60 priced in today shake-out, with material facts still outstanding but $1B/yr net profits for 20-30 years is tempting and a big company maker.
I think, long before the facts are on the table, the offer will be $6-8, in the $500M range, my bet insider Cleveland Cliffs before too much is well known in industry about Albany's Graphite.
Cheers, Mark