if drilling comes up with the goodies, this company is going sky high.
see below email from exploration manager.
i gave him some hypothetical scenarios in terms of revenue. he wouldn't comment which is fair enough.
Hi,
Hypothetical scenarios can be dangerous things! I wont say what potential revenue could be, but happy to give some pointers to your calculations.
Note that the spot price is a lot higher than the negotiated contract rate – although I think your estimation of $60/t is about correct – however, the forecast for next years prices is a minimum of +10%.
Included would also be production, haulage, processing and admin costs. In essence, as a small company with low overheads, our potential NPV and IRR could be significant.
But it’s still early days – we think there’s good potential.
Regards,
Nick
Nicholas Jolly
Exploration Manager
Transit Holdings LTD
Level 2, 16 Altona Street
West Perth WA 6005
LML Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
