Just to run some back of envelope calculations to see what Tony's left us with. From April this year to March 2015 we have 67 ships. That is two a month till October and three a month then onwards. That give us a total of 66 shipment for the two years as it stands. If we average 42000 tons per ship it will give us sales of 2772000 tons of IO worth at $120 per ton M$332. Taking out Watpac contract costs of M$93 we have M$239 to fund all the drilling and expansion and corporate costs. Now we look like having a loan of M$24 up front with the M$17.2 forward payment by Hyundai available to use so this should see us through and short term cash issues. Depending on the outcome of the trading halt we either have 100% or down to 50% or anywhere in between. If the M$24 is a loan it should be easily repayable from income over the next two years. Potential upside is the possible price of IO going up and the drilling to increase the reserves many times over with high grade IO. These figures are very conservative with the IO price at the moment $155 per ton. As Tony say it is looking good.
PLV Price at posting:
20.7¢ Sentiment: LT Buy Disclosure: Held
