Project Funding
According to Carter, Chad said at the AGM that De Beers mine could be had for $10 million as decommissioning costs will be around $200 million. I think it is very realistic with MTX buying it for $10 million - for a plant that cost $1 billion to build - and assumption of $200 million in reclamation costs. That $200 million contingent liability would be like kicking the can down the road as MTX will get a new time clock for at least another 10 years with the mine being kept open with a new lease on life. Also, assuming MTX will generate at least $300 million in annual revenue - same as Victor Mine - there would be over $3 billion in revenue over same period. The Present Value @8% on a per share basis and the Discounted Cash Flow will be huge in comparison to the current stock price of 7 cents. Because, there would only be around $10 million in capital costs v. $1 billion, the IRR for investors will be out of this world. This deal is very bankable & doable for MTX.