GREY:GIXEF - Post by User
Comment by
StocksLynxon May 18, 2014 4:45pm
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Post# 22574409
RE:RE:is the bottom above zero?
RE:RE:is the bottom above zero?I do not agree at all.
Instead, I'm sure Dunham does a great job. In the current environment every idiot can get financing by paying 30% effective interest rate for a first class asset like this.
This translates into $240 million for the first two years plus about $180 million in the next 2.2 years until full payback.
That would leave NPV $421 - total interest of $420 million = $1 million attributable to current shareholders, including Dunham. Shareprice would be $0.005 to reflect this.
However, it is really hard to get financing to a reasonable effective interest rate of let's say 10%.
This translates into $80 million for the first two years plus about $60 million in the next 2.2 years until full payback.
That would leave NPV $421 - total interest of $140 million = $281 million attributable to current shareholders, including Dunham. Shareprice would be $1.77 to reflect this.
It would also leave enough room to explore the unexplored acres.... which would drive the share price towards $2.
Do you see the extreme difference of $0.005 and $2 per share just because the effective interest is 30% versus 10%?
Do you understand that it is worth to wait two years to get such a reasonable effective interest rate. It becomes more reasonable with increased copper and gold prices, what is exactly what is in prohress currently.
Check out the updated presentation from March:
https://www.geologix.ca/i/pdf/presentation.pdf