Crouton ii3 Jun 2011 12:20
Inital SP off news for each of the above scenarios will vary.
- For the lowest or worst case scenario's from the above list, we should still see double digits i.e. 10p+. If Galaxy picks up [ and it looks to be picking up just at the right time! ] - the lowest of the above will help us head out to between I believe 10 - 14p.
- For 6million tonnes in the scenario at $175 per market price for commdity - we could see 10p+ for the project, to start with; plus everything else added in, including Galaxy, ranging between 13 - 19p.
- For 8million tonnes at $175 market price; we could see 15p+ to start with; add everything else, including Galaxy, we could range between 15 - 22p.
I haven't suggested anything at the moment for £200 price per tonne. We are on a slight correction for commodities, so would be difficult to get those right now, unless various figures and news suggest a global uptrend, then this will kick off, like everything else. I included the $200 per tonne calcs as we will be selling material from Tenth at that price or more when we eventually extract and sell to market. The world is growing, an growing hungrier too, for raw mineral and materials - particularly developing and 3rd world.
What I haven't counted into the equation is anything found for the Southern section of Tenth Legion. This is where we have a combined magnetite/Zinc mineralisation. Because of the nature of difficulties determing grade and percentage extractable, and costs etc, have left it alone. But suffice to say, this will add to NPV and Price per share ( could be anything from a further 2 - 10p - depending on how big and its quality; but just guessing here ]. If this project isn't viable, I'll be surprised [ and would in turn be making an expensive long-distance telehone call! ]. However, I do believe that CRHL have be working hard, and properly. They are more professional now than they were when they were ZZ [ before the effective 'takeover'; should say, technically, there's been no takeover, but we can guess at what's happened here! LOL ].
Finally, this is my best guess based on what information I've been able to gather over the past 6mount or so. Based upon what some previous examples of NPV calculations from industry practitioners, I know I'm not far off in terms of general general application of formula's and factors. However, it is hard to know and two people would likely always get two different sets of answers and figures. We've had very little to go on. I may have also made mistakes - if so, please do excuse!
We have other licenses too. Non factored in yet. All 'promising' enough to warrant applications to renew these licenses.
Finally, with Galaxy likely to pick up, and eventual listing to come [ have to admire their clear no nonsense approach to getting on with job ], we could be doing alright here...
Good luck all!