GREY:ARGEF - Post by User
Post by
skyyvodkaon Jan 29, 2015 8:46am
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Post# 23376149
Dilution is delusional
Dilution is delusional Imagine that hey have make a presumable bad deal
Required amount $300MM
- Equiptment $100MM
- Contractors $100MM
- Ramp up of Employees and miscellaneous $100MM
Dilution 100% @ .45
Total debt after dilution $230MM average interest rate 10% equals $23MM per year in interest payments. which is nothing, as soon as they can produce out of their plant there will be no problem getting more financing and they can expand quickly and even quicker if they can team up with an existing producer and retrofit their plants.
This ramp up plan gives a NPV of $20 per share with 310MM shares outstanding and 10% interest rate.
They have plenty of room for error and time given the enormous value when they get to production. All the talk about dilution is delusional, even if they would be forced to give out 200% dilution I still see great profits to be made for investors.
Year | Production (MT) | Gross Revenue | Net Revenue |
2016 | 15,000 | 45,000,000 | 30,000,000 |
2017 | 50,000 | 150,000,000 | 100,000,000 |
2018 | 50,000 | 150,000,000 | 100,000,000 |
2019 | 100,000 | 300,000,000 | 200,000,000 |
2020 | 100,000 | 300,000,000 | 200,000,000 |
2021 | 200,000 | 600,000,000 | 400,000,000 |
2022 | 200,000 | 600,000,000 | 400,000,000 |
2023 | 500,000 | 1,500,000,000 | 1,000,000,000 |
2024 | 500,000 | 1,500,000,000 | 1,000,000,000 |
2025 | 800,000 | 2,400,000,000 | 1,600,000,000 |
2026 | 800,000 | 2,400,000,000 | 1,600,000,000 |
2027 | 1,000,000 | 3,000,000,000 | 2,000,000,000 |