Buyout assumptionIn a previous post, I highlighted another salt M&A transaction that happened at 12.5x the EBITDA.
If we assume $50 of gross margin per ton, every 2M tons produced could be worth 1.25B.
2M tons = 1.25B
4M tons = 2.5B
6M tons = 3.75B
8M tons = 5B
10M tons = 6.25B
Just thinking about this for 2 seconds...
Anyone buying this deposit for (e.g $2B), could with low risk triple their investment in a short timeframe.
How long would it take to ramp-up from 2M-4M tons to 10M tons?
If they can achieve 10M in 10 years (conservative), that's a 20% IRR!
IMO.
MoneyK