If this was a no brainer, then the share price range would be between $0.9 and $1.10 and not down at $0.55 - $0.65. I have lowered this range from a previous estimate because RAD share price has been soft lately.
TRH's undiluted Market cap at $1 is $46.2 million. The RAD investment is currently worth $7.4 million. IMO, a TRH pre drill market cap of $35 - $45 million would be satisfactory for the Potash Project. The RM Research paper agrees and has a $1 pre drill target. According to the latest company announcements, we are in this pre drill range as drilling is anticipated early 3rd quarter 2011.
Other facts that would support a pre drill market cap range include:
1) 8 oil/gas drill holes completed on TRH ground (only one core)
2) 3 additional oil/gas wells drilled by Stone Energy from late 2010
3) Scoping study completed before JORC (Probably at a cost of $250K+)
no brainer of the century, page-37
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