GREY:ARGEF - Post by User
Comment by
skyyvodkaon Oct 29, 2014 4:43am
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Post# 23071076
RE:Out of the loop
RE:Out of the loopI remember Jon Hykaway discussing FeCI3 in his analysis. Remember that this is only one of the by-products available depending on the ore they use.
It is about de-risking the project, I can see a supply agreement for FeCI3 before financing to add further security and less dilution.
Right now we might look at a 100% dilution, which is still a good deal as the NPV for a 50k tpa module is 0.72 with a 10% discount rate and they can start construction. Once that is out of the way I do not see any more dilution, just more plants added until Chloride and Sulphate processes are extinct and Argex have a $20-25 billion market with 60-70% margins. it might take 25-30 years but they will get there.