re: Ann: SUCCESSFUL SCOPING STUDY FOR POTENTI...
Looks pretty good!
Annual Potash Production Assumption - 2 million tonnes per annum of KCl Initial Mine Life - 25 years Projected Potash Price - US$500-US$700/tonne KCl Estimated Capital Cost - US$2.4 billion Estimated Operating Cost - US$144/tonne KCl Sustaining Capital Cost - US$39/tonne KCl
2m tonnes x US$500 = US$1 billion in revenue US$1b - (US$183 x 2m) = US$634 million profit per year (is that right???)
Thus, should pay itself off within four years of mining based on lower expectation for potash price. (Hope my calcs are right, please correct if not)
Mine life of 25 years is great. Therefore, future profits to shareholders in a company with current diluted MC of around $25m is immense. That is, 21 years times US$634 million in profit. The mind boggles...
Main issues (as we already knew): cap cost, getting a JORC-compliant resource and mining approval.
Cap. cost not a concern for now pattyp as it will be a couple of years before heavy funds will need to be raised by which time MC should be much higher, improving ability to get funding.
Think you'll find TRH selling off a share to a cornerstone investor in the LT to help fund the project.
TRH Price at posting:
55.5¢ Sentiment: LT Buy Disclosure: Held
