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Gold/Mining/Energy : Imperial Metals (IPM.T) -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (591)	8/14/2010 8:38:14 PM
From: not_prudent	Respond to of 1366

I may well be over thinking this thing but if you found someone to put up $1.5B development capital in return for a 50% interest, it would seem to me that in a rational world the shares should take a $1.5B pop as a minimum. Oversimplfying things, they have to produce $3B net of extraction costs simply to break even (assuming the agreement splits operating expenses) on their initial investment and that doesn't include recovering what income the capital outlay could've generated elsewhere. So to keep the numbers round, say $4B has to be extracted before a partner is at break even. That's also $4B to Imperial. Then figure in what would be a reasonable return on investment for such a venture - say 15% that would be $225MM/yr net for the financing party as well as Imperial. I find the numbers to be breathtaking. If there's no smoke and mirrors involved why are we at $15 and change?? I'm wondering why there isn't a $40/share cash offer on the table as we write - considering that in the back of my mind I'm starting to think this is a $100/shr stock,