RE:RE:RE:RE:RE:RE:i will leave this right hereMoneyK wrote: I agree with you about this being a pre production mine, but from what it seems, getting it in production should be pretty quick, maybe 1 year once approved to build? Capex should also be very low, so almost negligeable in the equation? Lets imagine a conservative EBITDA... 4M tons at $50 gross margins.... thats a price tag of $2.5B CA when comparing with the K+S acquisition with LOTS of upside! IMO MoneyK
Lol....it doesn't matter how easy or quick one thinks it may be to get into production. Any potential buyer is likely not going to pay the vendor for heavy lifting that they have to do. If Atlas wants to maximize the return it will develop the mine and sell as an operating entity. Whether one views this as easy or not, there's a load of risk off any potential purchaser's back by buying an operating mine.
As to a $50 gross margin..well, that seems aggressive to me. However, that's why we need the indedependent FS to lend credibility to theses assertions. The margin, IMHO, plus the potential scalability to north of 4 million tonnes per annum is the key to this valuation.
After that, the discount a potential purchaser puts on the asset depends on how much they really want it.