Corporate
27-08-2011, 08:46 AM
Hi all,
I've come across Atlantic Limited who are nearing first production of vanadium. They estimate that production will be 6,300 tonnes per annum with a 28 year mine life. The latest presentation also highlights that they expect the cash operating surplus will be about US$14 per kg. At full production this looks very profitable and I'd like to see a NPV calculation!
There also looks to be some upside through Iron Ore, but I can't find much detail on it.
To finance the development they were able to raise $335m in debt and $55m in equity which is pretty impressive for a company with a market capitalisation of only $180m. The problem is they are locked in at an interest rate of 11% which is high in the current environment.
There are also 5m option that are in the money. Although this only represents about 5% dilution.
Has anyone else been keeping an eye on this company?
Cheers,
C
I've come across Atlantic Limited who are nearing first production of vanadium. They estimate that production will be 6,300 tonnes per annum with a 28 year mine life. The latest presentation also highlights that they expect the cash operating surplus will be about US$14 per kg. At full production this looks very profitable and I'd like to see a NPV calculation!
There also looks to be some upside through Iron Ore, but I can't find much detail on it.
To finance the development they were able to raise $335m in debt and $55m in equity which is pretty impressive for a company with a market capitalisation of only $180m. The problem is they are locked in at an interest rate of 11% which is high in the current environment.
There are also 5m option that are in the money. Although this only represents about 5% dilution.
Has anyone else been keeping an eye on this company?
Cheers,
C