drmf1234

Complant, and its Chairman and the GM had a meeting with the Minister in Beijing on April 15, with the presence of MAA delegation. On April 19, MAA announced grant of options.

Dutchie2

Great speculation. Just curious about which Minister you are referring too?

CHIP OFF THE OLD BLOCK!!!!

drmf1234

The April 15 meeting was with the Minister of Mines of Congo Mr. Oba Pierre, and the meeting was all talking about this particular potash project. The Minister promised to fully support this project.

This is a conversation between myself and drmf1234 on another hub. Please see previous post on Speculation. Kinda thought this was an interesting read for all that are long on this project.

It has been a long ride, and very bumpy at that, but, i hope with a successful out come for all shareholders. The critisism has been vast and fruitful of management and shareholder value. I am hoping for an outcome that surpasses my expectations. Keep in mind that the recent PP and delution of share's can hopefully be made up by the savings Complant bring to this project.

1.3 billion was the original cost for the plant. The hope's is that they can come back around 900,000,000 This would be a savings of 400,000,000 or 30% savings. The company was diluted by 40,000,000 shares, or 11% dilution. And plus the new option for management, ya i know, scoundrals.

So, the savings equals the total shares approx./outstanding. Quick math is $1.00/shares savings for everyone involved. The dilution gave Mag the stability finacially to see the negotioations out and i would suggest enough to run management and assorted expenses until the plant is in production and they start to see cash flow.

At this point we will own 40% of the project. 1.2 million tones/year at $550/tone=660,000,000 revenue. Cost to produce=$120/tone, leaving $430 profit at least. Depending on price of potash in 2012-2013. So you be the judge of that, could also be alot higher. So, 40% of $430=$172/ tone x 1.2 mill tones=$206,400,000.That equals .51/share first year on the Mengo project alone. So what's reasonable? 4x earnings, 6x earnings, 10x earnings?

Any comments?

CHIP OFF THE OLD BLOCK!!!!!!!!!!!