IF IRL make it through the rough patches this year and PEB keeps going on well:
(my simple elementary workings - wouldn't call it analysis LOL. It may be, and probably is, completely wrong):
2 billion tonne potash resource (exploration target) @ 4% potash/potassium = 80 million tonnes of potash
80 million tonnes of potash * $500/tonne = $40 billion!!
costs = 50% (this is a pure guess, i have no idea), so .5 * $40 billion = $20 billion net resource value after costs
IRL 17% stake in PEB (at the moment, could go past 20% and up to 30%)
= .17*$20 billion = $3.4 billion of resources
I suppose then you have to discount the expected cashflows at an appropriate rate over the mine life to come out with an rough (very rough) NPV
Even if say 400 million potash @ 4%, IRL would have (assuming a 17% stake) $3.4 billion/5 = $680 million of potash in resources in the ground (after 50% taken out as costs)
JUST BASED ON THE POTENTIAL OF IRL'S POTASH STAKE THIS COULD BE HUGE
Are my rough calculations way way of the mark??
Im quite tired and sleepy, someone correct me please!! lol
Hiphop
IRL Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
