RE:RE:RE:RE:RE:RE:RE:HC Presentation kha341 wrote: Clipper2 wrote: .... they also let Glencore take us to the cleaners for more than 100m in re-measurement.
More than 100M in re-measurement? The G contract costs Largo US$200M to more precise. Sadly..
From Q2-20 CC Lee Cooperman
Okay. Second – this is a difficult question, but most cyclical businesses have peak earnings, trough earnings and average earnings over a cycle. Do you fellows have a view of your normalized earnings as an enterprise? And the reason I asked that, I go back, I think the current market cap is US$489 million, minus the US$53 million of net cash. We have an enterprise value of US$436 million. I believe you guys have repeatedly said in the past that the Glencore contract costs you US$200 million. So that should be added back over time to normalized earnings minus what, of course, you have of taking the contract internally. So which seem that – well, let me guess answer to the question as you have normalized in a typical year, what do you think you guys would earn in a typical year?
Thanks kha
I was way too conservative.
I have $168m in my notes from my spreadsheet, but $200m ................wow!.
So they wasted 5 years working just for Glencore who were laughing all the way to the bank.
Sure, the contract helped Largo obtain the loan for the mine, but they certainly paid for it, and Largo managemnet were still sucking up to them right up to the end of the contract.
Thank goodness that's all over with.
The next concern is the warrants, some of which are close to maturity.
How worried should we be?????