Molyhil in full tungsten production & sale should deliver approx $15m cash flow per year.
With a customer willing to buy 70-75% it should deliver approx $10m cash flow per year.
If they can market the remaining tungsten, the molybdenum & other possible by-products eg. magnetite, flourspar... then Molyhil might deliver approx $20m cash flow per year.
All assuming metal prices remain as is or better.
With a predicted cash generation multiple of around 1.5x, a payback of under 2 years, Molyhil does compare very favourably against its peers in this sector. Now if they could just extend mine life!
It has been suggested finance of approx $70m is reqd to get Molyhil up & producing, if Thor pursue a BOOT model their (our) share of finance might be reduced to $20-25m.
Add into this mix Spring Hill producing revenue & possible Dundas surprises then Thor begins to look attractive again.
There are plenty of 'ifs' above & risk remains here without a doubt but with some good fortune, some imaginative management, good honest newsflow, MB statements & promises & predicted dates kept to, then we might all see better times... ;-)
(All figures are my approx & i'm happy to see them corrected by more knowledgeable investors than I, go for it.)
gla
MT
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