goodbye, page-2

auto,

i think you have no idea.

have a read of the last 10 announcements since last year and in almost each on where they talk about finance the company has said that they can get the banks to finance 65% of the project costs.

other than selling equity how else are they gona get the other 35%? fresh air?

they have to have a rights issue (which means more shares) or they have to sell part of the project.

so they sell 40% of the project, get their $300m and then say hey bank, we have $300m to build the mine give us the $600m and see you later.

so what you will see happen is that AXO will end up with 400m shares (after conversion of convertibles and opts) and EBIT of around $400m at 10mtpa. If we use MGX's PE (5x) then it will be worth $2b, if we did an NPV i would assume you would get a price closer to $6. If you wanted to be outrageous and used the 15x from the CKI deal then it would be $6b or $15!!!

no one is gona come in for project equity and pay EBIT multiples when its not producing, why did RockCheck only pay $0.85 in the last cap raising? you cant have it both ways.