Camrova Resources Inc. (BAJFF)

[carl12341234]

Baja has experienced some cost overages. Let’s take a closer look at just one of these numbers, and what it might mean.
BAJFF is comprised of 70% ownership in the Baja mine. They have developed this mine and preparing to start production. Firstly, the Korean conglomerate is responsible for 30% of every dollar associated with bring this mine on line, and operation afterwards. This includes this $246 million dollar expense. BAJFF is required to secure the 70% that amounts to $173.2 million dollars. The Korean conglomerate is responsible for the 30%. Yes, a sizeable amount however, only 15.2 % of BAJFF’s cost to bring the mine on line.

Let’s assume for the moment, BAJFF secures additional financing at the same rate as the original loan program. BAJFF has projected the expected Price Per Share Earnings (PPSE) will be $.80 to $1.00 per share including debt service on the original loans. This was calculated at $4 per pound for copper.
The debt service on this new $178.2 M would amount to $.05 to $.08 reduction in the PPSE. Yes, a nickel for the debt service.
The stock sells off 60%,

Carl