npvs and dcfs

Here is a cut and paste job from an awesome poster PattyP in Sep 2008 when the MAK share price was $1.04.

""Risk/reward, some believe the risk is on the low side and the reward on the high side. "

Rod,

Risks to buying at today's price really only include complete disaster... eg. Never produces, or Phosphate tanks to $60P/T... Such is life eh?

If I factor bad numbers into a "Real" DCF then the downside is extremely limited or even none.

When you look at the bad-case, then compare to the good-case, MAK has an extremely attractive Risk/Reward proposition from these levels.

You'll notice that I've doubled CAPEX, (70% paid through dilution), OPEX is $130p/t, production never EVER hits 3MT and Phosphate prices fall more then 50% before we ship anything.

DYOR... etc"