PINL:HYKUF - Post by User
Comment by
auburn2on May 13, 2022 12:43am
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Post# 34680352
RE:RE:RE:RE:RE:RE:RE:RE:RE:Train wreck
RE:RE:RE:RE:RE:RE:RE:RE:RE:Train wreckFor example, A Seam. 600,000 tons at say $250 - $100 costs = $150.
That's US$90 million for the first year with estimated US$28 million start-up costs. 6.4 million tons of proven reserves, so 10 more years of 600,00 tons production based on the proven reserves.
If a company held this asset, and nothing else, what would it be worth?
At $50 margins based on $150 pricing and $100 cash costs (high to be conservative) it generates undiscounted US$300 million.
So C$100 million is reasonable for that project because of the very rapid payback of investment in this environment. Current margins would be much higher than $50.