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Atlas Salt Inc REMRF


Primary Symbol: V.SALT

Atlas Salt Inc. is a Canada-based mineral exploration company. The Company is engaged in the evaluation, exploration, development and production of industrial mineral properties in Newfoundland and Labrador. The Company’s principal asset is the Great Atlantic salt deposit project (Great Atlantic Salt Project), located in the St. George Basin of western Newfoundland. Its Gypsum Project is three kilometers (km) southwest of Great Atlantic salt deposit, which is an early-stage and open-pit production from the Ace deposit. Its Nepheline Syenite Property consists of a surface occurrence of nepheline syenite along the southern Labrador highway. The project is located approximately six km from tide water.


TSXV:SALT - Post by User

Comment by Zephyron Mar 22, 2023 10:37am
176 Views
Post# 35353505

RE:RE:RE:RE:RE:The Atlas Salt Game Plan

RE:RE:RE:RE:RE:The Atlas Salt Game PlanOk, I'll bite.

I've have said here, any other places, that the notion of $70-$80 (or $40-$50, etc) has always been a stretch. However, not because I can't represent those values to anyone in a properly executed NPV, but becuse if this gets bought out, no acquirer is going to pay values for an asset as if this was an operating company with years of historical, executed cash flows.

However, explain to me why, say, $10 is not in the realm of possibility? I certainly don't put $10 in the same bucket as $25, $40, $50, $80, etc. For the record, after the January NR for the PEA, I did a full after-tax NPV, discounted it at various rates based on the increasing risk a vendor would take on, and discounted certain NPVs by factors from other mining industries (i.e., someone noted that in the gold mining realm NPV5s are multipled by 20% to arrive at an asset purchase price range). When I do the calcs on a couple fronts I can easily get a $10-$12 range and this represents a severly discounted value from pro-forma NPV calculations.

I'm being sincere here. Explain to me the calculated rationale as to why $10, or $8, is not even possible. Also, I agree there have been a few that believe the $70-$80 price in a bidding war. However, those a few and far between and are the outliers. I'm pretty sure Management don't buy into the elevated valuation hype.


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