World class Tungsten Production, page-9

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rollacoaster

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30/10/20

09:27

Post #: 48514241
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Originally posted by GoldBugBob ↑

@rollacoaster I feel we are arguing a moot point and you out just pointing out potential flaws for the sake of it.

- it's the highest grade in the world
- it has minimum 8 years mine life (potential to expand)
- its 2km from deep sea port
- all approvals in place
- NPV of close to $180M

We've worked out even fluctuating Tungsten prices it can make $15-30M of free cash a year for minimum 8 years.

Now keep all that in mind and consider it's currently capped at $24M. I think you're judging it a bit too harshly for how cheap it is still.

Again I don't want to cross promote but I know coal deposits in Indo with debt much higher than their market cap, coal tenements in russia, gas projects in South Africa. Financiers look at 1. offtake 2. ability to service debt 3. npv of the project.

KIS has offtake in place, can easily afford repayments on $65M over 8 years and has an NPV 3 times the size of their capex need.

The IMF do no interest loans to special economic interests for a start. There are a couple of others.

That leaves your final point it may be jointly funded by debt and equity. They might at most take $10M of equity to let Elphinstone get another position but it won't be at these prices. If they raise more capex at 20c are you really going to complain?

I said in my first post let's keep expectations real this won't be an Disallowed. However $50-100M market cap seems fair to me.

Expand

Can you show me where CMFO have/do declare projects 'special econonic interest' that you keep claiming?

Np offence but you have been making some wild statements:
16 year mine life (when it is only 8 years currently),
100% debt funding on cheap or interest free terms,
and a 'Special economic interest' declaration expected from the CMFO that doesnt seem to exist

KIS Price at posting: 9.3¢ Sentiment: Hold Disclosure: Held
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World class Tungsten Production, page-9

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World class Tungsten Production, page-9

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