Prices are derived from the August 08 Browns Update Report: "Investor Update - Browns Oxide Update_August 2008.pdf".
Your figures represent all CMR’s share of related Revenues, Costs (OPEX) and Net Income.
So if under such an arrangement HNC was to take 1/3 of CMR’s Revenue ($30 million) and therefore also pay the OPEX for that 1/3 share being OPEX of $20 million on a yearly basis they would have $10 million net profit/annum. So over 3 years we(CMR) would pay down the $30 million in HNC loans.
So all your figures below are CMR specific.
Per year Analysis for 3 years
Revenue/annum (2/3 90 million) = 60 million
OPEX/annum (1/3 reduction of 60 mill) = 40 million
Shareholders and creditors/annum = 15 million Which is 7.5 million to shareholders (based on 150 million shares and a dividend stream of 5 cents per share) and 7.5 million to creditors in principal and interest
With Surplus = 5 million
Looks good to me...
So all that remains is to get the Browns Oxide Mine up to name plate for Cu, Co and Ni in time for an improving base metals market and the above scenario may well be possible...
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "Perseverance is not a long race; it is many short races one after another". ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CMR Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
