RE:RE:RE:Special Committee Members & Videokennethjw wrote:
IMHO, the only valuable thing the Q3 financials tell us is the carrying value of the debt. The financial statements may say net PPE is 529MM ... but remember that when the company was in its development stage they capitalized every dollar spent to "PPE". There's a lot of dollars books to "PPE" that really have no value to an outsider. It is taking a longer time to complete the audit this year-end because the company has to prove that the "PPE" is still worth 529MM. To prove the PPE isn't impaired you need either 1) discounted cash flow model with a NPV > carrying value; or 2) a binding offer. The Company can't produce anything right now and we haven't heard of a binding offer. The "PPE" is only worth the cost of the steel. Very good chance for a large impairment when the financials are released. With that said, there are plenty of valid arguments to value the stock north of $0.25. I'm hoping for a full buyout. GLTA
You right in the sense that we don't know what is the up to date PPE, my evaluation is based on the last financial report.
But the net PPE here is based only on ITAFÓS, at stage of production with a lot of reserves and resources, still at pre-commercial stage with SSP production of around 95 000 tonnes in 2014 and planning to produce around 325 000 tonnes in 2015.
All together, it is impressive,
ITAFÓS: Proven, probable, measured, indicated and Inferred mineral reserves and ressources of 92MMtonnes, 19 years mine life and an net PPE of 529MM
Santana: Probable, indicated and inferred reserves and resources of 130MMtonnes, 32 years mine life and an NPV of 400MM based on FS filed in Q3 2013
Araxá : Minerals resources estimate of rare earth oxides with measured, Indicated and Inferred resources of 28MMtonnes, 40 year mine life and an NPV of 967MM based on PEA filed in June 2012
And even better, the Company extended the maturity date of his loans to 2016, giving them the time need for a Recapitalisation, Merger or Acquisition.