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Wouldn't MMTE have more value not merging in the scenario you described?
In a possible merger with Li3 you've shown, shareholders would see a little over 3X on current value.
In simply owning the assets with no merger, you've shown a PPS of 0.032, which is about 10X from current levels.
I respectfully disagree. $90M-$130M is only 3.9%-5.6% of the $2.3B of lithium and potassium you calculated. I think it should go higher.
How did you come up with the $100M figure for the processing infrastructure and $500M max profit? Is that based on some average? Did you examine on how lithium is extracted from the sources you're using to build a model?
Additionally, not all lithium involves the same process to extract, some are more involved and more expensive. If you look at LEXG Canada lithium properties, the lithium will be extracted from the oil in the ground. The nature of the Chilean concessions MMTE is working on will involve a cheaper method to extract....essentially built out of an "irrigation" syatem that extracts the lithium using water and allow the water to evaporate and yielding lithium.
Also, if MMTE sets itself an as acquisition candidate to a giant like SQM as you suggested the other day, then the cost to production is less due to the available resources a company like that will have. Therefore, nailing down margins is not easy at this point.
It's not easy figuring out what the margins are at this point. We all know that there will be a cost to extract. In the land of pink, MOMO can take you further than any can dream, so let's see what kind of news Liebs can deliver.
Sorry for the poor grammar/mispellings...typing on my handheld.
I get it. No need to be rude. I didn't read most current post from today, but replied to what I head metally from what you posted the other day.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61829837
You can't make an estimate based on someone else's market cap/acre without comparing lithium concentrations. At least be consistant with the metrics you use to base your estimates. If both companies have the same lithium concentrations, then it would be an ok estimate, but it's not.
That's a nice hit!
Your estimate is a lowball figure.
Per the PRs, the 31,000 acres contain lithium value of $10,000-$30,000 per acre.
If you're going to use a lower limit on the estimate, then it should be $10,000.
That's $310M and 0.062 PPS.
imo :)
You obviously don't understand.
I personally don't care about the day-to-day action. It will ll boil down to news. If we get news like we're hoping to get, then we'll all be golden.
imo :)
I emailed him Sunday night and he replied the next day. No problems here. No one else seems to have problems.
Let's stop the misinformation.
You're right...if Liebs has the goods, then we're all golden :)
I sure hope so Raptor! You think we'll see news this week?
No problem junebug. The credit goes to paradigmwizard for that post. I'm just re-posting.
GLTU :)
junebug, here's great explanation from paradigmwizard of what may happen...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61667629
I'm sure MMTE will ramp up production, but you need to look at the asset value once the land deals are done. I can give you a list of many companies in the energy/mining space that have zero production, meaning no revs, but have a market cap over $1 billion.
Do you think we'll still be trading sub-penny if MMTE has land valued at $300M+? I don't think so.
No-brainer here...
imo :)
Just some misinformation...
Would be nice to tap and break 0.004. We have a good chance of seeing that today...
IMO :)
If they get the 31,000 acres, then I think this will easily be 0.05+ minimum.
imo :)
Makes perfect sense PW! In such a case, the company's assets will outweigh it's liabilities.
cheers :)
Here's another angle. Perhaps it's both??? Not sure.
Maybe you buy the land, but also have to be granted the right to perform such things as drilling and mining?
5. right to use land: an official license granted by a landowner or government that allows work such as drilling for oil to be carried out in a specific area of land
http://encarta.msn.com/dictionary_1861599333/concession.html
Maybe buying a piece of land doesn't automatically allow you to do certain things like mining, and you have to be granted permission by a government due to some local regulations and requirements. So maybe in this case it's not a lease, but rather ownership with permission to mine the land.
Thanks Mike :)
This could be the stock of not only 2011, but for many years to come if all goes well!
GLTY Mike!
I hope you pick up all the shares you want :)
No worries Truebreed :)
Hoping for a PR this week.
cheers Mike :)
Please revisit the PRs. The 1008 acres you're talking about is only a small portion of a total of 12,500 hectacres, or 31,000 acres, the company is trying to acquire. Each acre is valued at $10,000-$30,000.
31,000 x $10,000 = $310,000,000
Here's one PR...
http://finance.yahoo.com/news/Mammoth-Energy-Group-Under-iw-2045647673.html?x=0&.v=1
That doesn't make sense. So they have to pay at least $300M just for the right to use the land? So at the end of the day, the company doesn't have any assets from land? So MMTE has to first pay $300M just to start production?
What kind of financier is going to fund something risky like that? What collateral does a financier have in the scenario you outlined?
JMO :)
Heck, for that cost maybe I should buy land down in Chile and start my own lithium operation.
Don't want any misinformation :)
So are you saying each acre is $0.33-$1.00?
Did you actually put enough thought into what you're saying?
Are some people lacking a brain?
First, the PRs are clear to anyone who speaks English that it's $10,000-$30,000 per acre.
Second, if it's $10,000-$30,000 for all the land, that means each acre is $0.33-$1.00
Who's actually dumb enough to think you can buy land that cheap, especially with land rich in a very valuable resource?
We'll see what? Unless you have a problem reading and understanding the English language, there's nothing to see.
Someone on this board has already showed you an email from Liebs that answers your question. Why do you insist on spreading misinformation?
Do we need a lesson in English? It's crystal clear from the PRs that it's 31,000 acres with each acre valued at $10,000-$30,000.
Use your brain. Do you think he needs to get funding if it's $10K-$30K for everything?
Wow Raptor! That like 0.15-0.30 PPS...I can live with that!
lol :)
One last pump? Watson has showed the fins and there's nothing to pump. GRDO was never a scam or P&D. It simply was a biz that didn't make it.
IMO
You hit an important point itrader...imo...which is Watson seems to be going through hoops to prep GRDO for a RM. This makes me confident that a RM will happen, as there's an interested party.
cheers :)
No doubt Patience. If things go well, it'll definitely be a wild ride. The only question is how wild will it be?
Beautiful post muni! Sums up everything perfectly.
Does GRDO's situation as a company suck? Sure, but I'm over it and we have a chance to reset the clock with a RM. No use in throwing your hands up in the air or constantly crying about it. I'm over it and ready for a new beginning...whatever that may be.
cheers :)
Then why bother with the reporting? Looks to me he's preparing a shell for acquisition. I think he does have a merger in play...imo :)
That would be wild, but we'll have to wait and see what the company acquires.
Hopefully we have exciting times ahead :)
The book value at $30K/acres would be 0.186 with an O/S of 5B.
The CEO said there would be no more dilution per the following email...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61289633
Other shareholders have received a similar email upon inquiry.
Hope you had a good time sir :)