I can't seem to get a response from Sophie at WSP to questions I
originally sent last Wed., the 7th. If she was on vacation or needed time to research the answers, nobody at WSP let me know. Seems like either 1. the WSP email or my email isn't working right, or 2. someone is asleep at the switch or 3. I'm being ignored.
Whatever the reason, if you're interested in the answers please copy these questions and email IR at WSP, rr email your own version. Then let everyone on the thread know if you get some answers. I don't believe the answers to any of my questions are in any of the NRs. I don't know about you, but I find it frustrating not to get answers to such basic questions. The answers to them (at least the ones exclusive of CC's valuation methods) are obviously known, so it's not a matter of them saying, "Gosh, I don't know." Here's my past letter slightly edited to delete items made clear with the NR of 10/14:
Sophie,
I emailed last Wed. with the following questions:
Sophie,
(re the NR before 10/14)
1. Why did the valuation go to C$400 per tonne from $343US/tonne?
2. How did they come up with 3.5 million tonnes when they say the dyke is assumed to extend a min. of 1800 meters? That would make it a lot larger in tonnes than the Model 2 number- are they being conservative, or am I missing something here?
3.How much is a WSP share worth based on the David James, CC figures (pre-10/14 NR), which I figure are OK with
WSP? The following is an exercise I tried based on the CC figures:
In Situ Value: $400/tonne X 3.5 mil tonnes = $1,400mil
Less $87/tonne operating costs - 304
Less capital costs - 104
Net value 991.5
WSP's 67% share 664
Divided by 37 mil shares fully diluted $17.95/sh
Am I way off or on track?
The Model II figures give $104 as capital costs- that I get. It's the
operating costs of $305mil and the cash flow of $572mil I don't
understand. Is that for all 10 years? When the cash flow is stated at
$572, is that for all 10 years? Should one take 55.6% of the cash flow,
subtract the capital cost, and divide by the # of shares??? Should one
subtract the $305 from $572 and then subtract the $104 capital cost?
I'm quite confused as to how to figure the NPV of a WSP share based on
Model II. Any help at how to do the arithmetic will be appreciated. I think everyone wants to get a gauge on how to evaluate the value of the dyke based on current information.
Sincerely,
Tomato |
