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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?


To: Tomato who wrote (1394)10/19/1998 11:04:00 PM
From: maintenance  Read Replies (2) | Respond to of 2251
 
I made another mistake. I forgot to put the $1500000 G&A in the equation, the NPV per share should be $9.54.

The NPV, in this model, is true at the beginning of the year production begins. So no, the price would not appreciate. If we assume that production begins two years from today we would have to further discount for two years or $7.88 per share.

The model you have presented is more realistic than my original. I was in error in taxing prior to payback. I taxed too heavy as well.

Back to your financing question, if Winspear were to operate the project it is very unlikely they could go with just debt. They would likely get a mix of debt and equity. The debt would almost certainly contain some control. Unfortunately the mix would likely be heavier on the equity side. What is TIA?

Cheers