RE:RE:RE:RE:RE:New Gas Processing Plant CostTrue.
There are two ways to value the plant....replacement costs..... and operating earnings.
Replacement costs would be in the $1 million per MMcfpd range or about $85 million US.
Re operating earnings ( free cash flows ), I have no comparable proxy as I know of no other junior which operates a gas processing plant in Argentina.
So, I use MNV which is a oil/gas producer in Argentina which trades at 7 times raw cash flows.
But, this is about 50 % encumbered due to the need to explore and replace production removals.
That is, MNV trades at about 14times its free cash flow .
This is a more correct valuation for RPTs gas plant and would value it at about $75 million US.
Now, both estimates are very much alike..