OK Now Ive read the post and heres my take at the moment.
AWESOME POSSIBILITIES HERE ! ! ! ! ! !
My Response to RB post by STE
Checking the math here....
Minimum stated production 22,000,000 lbs
60% in Hi Grade Mica 13,200,000 lbs
Hi Grade price
quoted at the meeting/lb approx $14.80/lb
Value of Hi grade at top end $195,360,000
Conservative est @ 8.00/lb $105,600,000
Remaining Mica at bottom price
8.8 mill lbs at $1 $8,800,000
Total Mica Revs yr 1
114.4 million to 204.16 million
NOW, I believe you are saying that the feldspar host will be sold on top of these mica numbers and that the sale of the feldspar will be enough to offset the cost of processing the mica to where the margin on the mica is effectively 100%!
Now if they came out of their Quiet Period on Thursday morning they began to speak publicly. But they could only use the commodity price for unmilled mica. This was true because the AZ Land Office is about to approve their Mine Operations plan and they can't talk about firm contracts until that is approved.
If Ive got that right, then I would expect them to be contracting for material as soon as the plan is approved. AZC has 15 mill cash already. Add their very minimum estimate of 15 mill clear profit on mica and that equals 30 mill cash which says the stock is worth current values JUST ON CASH. Forget the other projects. They are a bonus!!!
Even the low projection of 100million a year at a 100% margin against 29,000,000 shares comes to over $3.40 EPS! A gentle multiple of 15 P/E says we could be looking at $50/share! If this is all correct, I would have to say this is an undiscovered bonanza.
Lets see some DD out there!
BHunt |
