Post by
MoneyK on Oct 05, 2022 2:49pm
Buyout assumption
In 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
Comment by
TeamEddie on Oct 05, 2022 3:39pm
how do you quantify the climate risk in a buyout?
Comment by
Scionxb777 on Oct 05, 2022 4:23pm
The only risk is people dying in severe winter weather without proper road salt
Comment by
TeamEddie on Oct 05, 2022 4:35pm
deal in reality man its a factor we have to consider and any co buying us will
Comment by
Crunchy2chew on Oct 05, 2022 5:22pm
There is no climate risk, climate change/warming/BS. Some morons think cow farts are melting the ice lol.
Comment by
Donwaan on Oct 05, 2022 6:11pm
Crunchy did you forget this already? Which is a bigger methane source: cow belching or cow farting? Contrary to common belief, its cow belching due to enteric fermentation.
Comment by
TeamEddie on Oct 05, 2022 6:21pm
Donwaan surprised to see you are ignorant of the actual state of the planet or the fact it will be a factor in our acquisition price
Comment by
Scionxb777 on Oct 06, 2022 8:01am
The state of the planet is causing winter wheather in Canada to be more extreme with more ice and more need for salting roads. Your right the current state of the planet will make this resource more and more valuable.
Comment by
Scionxb777 on Oct 07, 2022 1:07pm
I drive from Goderich to London Ontario Canada three days a week for last 20 years .The winter conditions are worse than ever Why is it Goderich Salt demand has increased ?
Comment by
twoponds on Oct 07, 2022 6:29pm
Glad no one was around at the last ice age! Weather is cyclical...people got to get over it! You do know that many tropical plants have been unearthed in the polar regions right??! Where were the global warming bandwagon green followers then lol...oh well...
Comment by
Crunchy2chew on Oct 08, 2022 12:16pm
This post has been removed in accordance with Community Policy
Comment by
Donwaan on Oct 06, 2022 10:23am
I am onboard Eddie. That post is just my way of expressing the ridiculousness of those who claim climate change and global warming are not real. How they will impact the ultimate value of GA is uncertain but it will be a consideration. To think otherwise is foolish IMO.
Comment by
Crunchy2chew on Oct 06, 2022 7:01pm
This post has been removed in accordance with Community Policy
Comment by
Donwaan on Oct 07, 2022 10:38am
This post has been removed in accordance with Community Policy
Comment by
MoneyK on Oct 05, 2022 6:39pm
If recent billion dollar transactions were done at 12.5X the EBITDA, I'll assume that people, much more qualified than both of us, took the climate change into account when crunching the numbers. MoneyK
Comment by
Crunchy2chew on Oct 05, 2022 6:47pm
only a retard belives in the climate cult. The whole global warming is the drug of choice for the weak minded beta.
Comment by
TeamEddie on Oct 05, 2022 6:59pm
I would not use such infintile terminology but I do believe the strongest storm in the co's province just struck there so I woul have to say anyone denying the reality would suit those terms better, grow up as for the other guy it will be a part of any considerations and yes they screwed up I have seen co's bought out go under several times