Thanks, Knight. I don't have time tonight to do NPV analysis, but excluding time, taxes and discount rate, a very quick and dirty calculation reveals:
178 million pounds minable reserves X 25 cents cash profit = $44 million cash profit vs. $19 million capital cost = 130% return over the life of the project. If the project lasts, say, ten years, that's a 13% return a year. Not exactly laughing all the way to the bank, but not bad. With, say, 50% debt, the return might get to 20% a year.
OK then, here's the big question...would His Sidship use the profits to finance further R & D work at FL as promised in previous press releases?! :o) |
