Comment by
Flow23 on Mar 04, 2012 2:01pm
Majormac thanks for calculation, but you have forgotten to include capital costs and and the discount on selling price to IMC, Brian stated some discount in the conference call but no exact number.
Comment by
Majormac79 on Mar 04, 2012 2:19pm
I did accounts for IMC's 25%share (read closer) And I charged all capital expenses to the tungsten part of the operations for determining the total profit. (read over that if you missed) There is no tax on the first 5 years but i think there is a 2% royalty to be paid out which comes from both IMC and Woulfes cut (not accounted for in my calculations)
Comment by
Flow23 on Mar 04, 2012 2:39pm
You have used 170$/mtu right? But 150$/mtu- 170$/mtu apart capital costs, where have you considered (debt (roughly 100Mil) * interest rate) ? With the actual oilprice 170$/mtu seems to be more appropriate. Woulfe won't sale the Tungsten for 100% market price to IMC, Brian mentioned that at the conference call. If I remeber right, the bought out the 2% royalty end of last year!