TSXV:CAV.H - Post by User
Comment by
mining_pays_my_billson Apr 02, 2014 11:27pm
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Post# 22403684
RE:Illustrative Purpose in the News Release Today. 91 million
RE:Illustrative Purpose in the News Release Today. 91 millionLostalot- this is a good find, and its about right on target too. As a general rule in high level estimating we assume 55-60% of a project CAPEX is tangeable assets (equipment, structure, etc.) and 40-45% is labor and contingency cost. So with this project CAPEX being 1.75B$, 45% is about 800M$, leaving about 950M$ in assets. BAJ 10% of that is about 95M$. Like I said, thats a general rule, +/-, so 91M$ like you said makes perfect sense. So this company as it stands right now according to KORES and BAJ has a book value about 7 times it's current market cap. Like you said it's only worth what people are willing to pay, but I suspect the SP will go up to at least 4 or 5 times market cap as the value of this company becomes evident (after construction completion, commissioning, production, cash flow) And if theres a buy out expect a handsome premium on book value.