Atlas Salt Inc V.SALT

i will leave this right here

[Crunchy2chew]

weak minded climate therorists and the gravy train indeed.

https://greatawakening.win/p/15JU7x3Jbv/ooops-this-interview-definitely-/c/

[TeamEddie]

I assume you are kidding when you call a person who points out the fact any potential company looking at an  acquisition will take into consideration the reality of climate change in their risk assement and use all the scientific info gets a reply referencing a insane wack job conspiracy web site  at this point I am unable to believe anyone is as stupid as you and your ridiculous

[MoneyK]

Eddie, you also should point out facts. Stating that purchasers would use 10 years to put a value on the project is certaintly not a fact. Unless you can point us where the company stated this? MoneyK

[MoneyK]

Heres a fact. Stone Canyon purchased a portion of K+S for 12.5 times the EBITDA. A 3.2B US deal. https://www.kpluss.com/en-us/press/press-releases/KS-sells-its-Americas-salt-business-to-Stone-Canyon-Industries-Holding-Mark-Demetree-and-Affiliates/ I'll let you imagine the EBITDA potential for Great Atlantic and do the math. MoneyK

[Zephyr]

Lol, I'm surprised it took this long for someone to find that! Yes, that is one of the metrics that can be used to assess the value. This will need to be paired with a detailed DCF analysis model with a range of possible outcomes to assess the possible valuation of an operating mine as well as other KPI/industry metrics. However, at this point, this is still an undeveloped mine (assuming we

[MoneyK]

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

[MoneyK]

10M tons at $50 gross margin x12.5 could... one day... get us close to $76... LOL... ... but, I'll gladly take 25%-30% of that in 2022! MoneyK

[Zephyr]

Yes, this asset has great potential. However, to get to a valuation based upon an average of 10 million tonnes of production would take years. Unless a purchaser is exceptionally motivated, they are not going to shell out $ for an unproven ability for a valuation based upon 10 million tonnnes per annum. Hell, even if an operating mine for sale had averaged 5-6 million tonnnes per annum and a sale

[Zephyr]

Lol...July 2022, not 2002

[MoneyK]

I fully agree with all your points. If GA is a fraction of Goderich to operate and salt sells for $80 per ton, I could see that gross margin happening. On a side, lets not forget that Kinross took GBR out for over $1B without even a Ressource Estimate. We never know what could happen. IMO MoneyK

[Zephyr]

I hear you. I'm not discounting that type of thing here and even my preliminary takeout range of $8-$12 falls right in that category. A $1 billion takeout equates to about $10.55 per share on a fully-diluted basis and right in the middle of my current range.

[MoneyK]

Dont be too conservative. At least make it USD! :) MoneyK

[MoneyK]

Compass Mineral also normally trades at around 12-13x the EBITDA. Seems to be the norm for this industry. MoneyK

[Scionxb777]

The buyers are highly motivated they are paying huge shipping costs for Salt right now  Doom And Gloom slowboat 

[Zephyr]

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