OTCPK:MEAOD - Post by User
Comment by
JRaffleson Mar 09, 2016 2:25pm
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Post# 24639935
RE:RE:RE:RE:RE:MTO
RE:RE:RE:RE:RE:MTOEconomically, to abandon BL and rely on Barry will not work:-
- There are capital costs required to make Barry productive (eg concentrator). Trucking with low oil prices is a bonus but cannot be relied upon.
- If MTO can achieve 8gt from the on site Moroy resource & Hewfram, then that is 6gt after SSL's stream. 6gt is better than Barry is ever likely to produce.
The leverage can best be applied by generative cash flow from BL and threaten to use that positive cash flow at Barry, rather than to invest it all in BL, partly for SSL's benefit.
If SSL could increase their streaming output by MTO investing most of its future cash flow in BL, then SSL may agree to, say, a 10% stream and still be better off, due to volume.