RE:RE:Awesome News! Massive potential.stranger5 wrote: How do you figure $80,000,000 . As 200 tons X $40,000 per ton is $8,000,000 per year minus cost $6,880 per ton ($1,336,000 for 200 tons ) = $8,000,000 - $1,336,000 = $6,664,000 profit for that deal .
Or 1,500 tons planned per year X $40,000 per ton value = $60,000,000 - 1,500 tons X $6,880 per ton cost to produce = $10,320,000 expenses = $49,680,000 profit per year if it can all be sold for that price and nothing goes wrong .
Am I missing something ?
Yes and No
What you are missing is that when we are producing graphite we are also producing marble.
The marble sales completely cover the cost of $6880 for the production of graphite.
The second thing you are missing is long term agreements are treated differently then a mere annual income. So $80,000,000 USD is $105,000,000 Canuck over 10 years, or if you wish to stay with USD is $80,000,000 over 10 years @ costs of $5100USD per tonne.
Marble will sell for $300 Canuck a tonne and production of 150,000 tonnes after costs gives a net back of about $200 a tonne. Which is $30,000,000 Canuck.
$30,000,000/1500 graphite tonnes = $20,000 of cost coverage per tonne of Graphite Cost.
If we remain at 75,000 tonnes Marble then the "donation" to graphite costs is still $10,000 which is more then enough to cover, wages, pensions, CPP, Insurance, taxes and daily costs for the entire project.
So the Gross Income of Graphite for CCB is the NET profit after taxes.
Now take 1500 tonnes at $40,000USD and you get $75,000,000 Canuck with 10 year contracts you get $750,000,000 worth of stability. That gives you much higher multiples. So a multiple of 22-25 would likely fly with ease.
So you get 70c a share x22 = $14.00+/- 10% per share as a "reasonable full up mine".