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Argex Titanium Inc. ARGEF

"Argex Titanium Inc is a Canadian company producing high-grade titanium dioxide (TiO2) pigment. The company has developed a chloride-based technology, which is environmentally sustainable. The white pigment produced by Argex is to be used in high-quality paints, plastics, specialty, and other applications."


GREY:ARGEF - Post by User

Bullboard Posts
Post by skyyvodkaon Jan 29, 2015 8:46am
313 Views
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   




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