RE:RE:RE:RE:RE:RE:Estimated share prices for KRN (first 3 years of production)topadvisor1 wrote: Curvature, I think it is YOU who DOES NOT GET IT. After speaking with the CEO, it was clear that production costs will be around 130/t. Let's just say it is 150 to make you fell better. Once they are up to 2 million tons per year, than they will make CASH flow at 300dollars /t of ; 150 dollars times 2 million tons, we get WHAT ????? 300 million in cash flow. Well that makes the payback on a 70 year mine life at least on paper of around 2 years. Excellent by any standards. So go and play somewhere else. This WILL be back to 6 to 8 dollars within a year or two. Not a bad return from here is it ????? It was brainiaks like you who laughed when I was buying IAE at the .20 cent level in 09. It is still over 2.50 after correcting a bit in the last few weeks. Guys like you are a dime a dozen. Do you EVER MAKE MONEY ??? I know the answer.
I think to be fair to curvature, his point is valid.
While I do agree that they would make money at $300 , it won't be much. I would guess about $50.
dont forget that transport and royalties will add $60-70 to the opex of $130. Add in intersest costs and it could be lower than $50.
Jeremy's detailed SP is useful to use. I don't think anyone here expects them to draw down finance and build in a sub $400 environment . But once they have built and are in production they would be able to endure a $300 potash environment .