I do not have many shares and I thought the merger might bea good thing seeing that there is money coming in. I do not like " this isa nonsense report" and that sort of stuff, and have become more confused. I like a simple 1 +1 = 2 so I can make up my mind. I bought MLM because it was a simple operation - ore shippedoverseas and a small profit end of story till this came along.
So I looked up reports of 100's pages
https://www.miningdataonline.com/reports/Goondicum_PEA_11252016.pdf
where in itis said that the mine has a life of 9 years and 1.6Mt Ilmenite and 275000 TApatite
Funny theASX merger presentation 12/9
3.4Mtcontained Ilmenite and 1.2Mt contained apatite - do not understand this what the contained is or if that is the totalproduction.
The mergerpresentation still says 160- 200t Ilmenite per annum, so I stay with the first.
The sellingprice quoted as US$204 per ton but the current world price is around US$ 192 - there isalso a repayment of US9,28/t to Hainan Wenshang for the 540,000 tonnes so say US$192 does not seem unreasonable to calculate I suppose
Averageyearly production in the first report
181000Ilmenite @ US$ 192/t = US$ 34,752,000
31000TApatite @ US$116/t
In themerger report it mentions the production cost of US$124 after Apatite credits -does that mean the proceeds of sale of Apatite finances the operationcost? I do not understand.
First year
181000Ilmenite @ US$ 192/t = US$ 34,752,000
Cost ofproduction @US$124/t = US$ 22,444,000
Net US$12,308,000
All othercost has to be deducted
too - 21men mine operation etc US$ 3,000,000
Leaves ball park figure US$ 9,308,000
Mine life -9 years = US$ 81,000,000
Less loanrepayment
over 3years US$ 21,300,000
Leaves US$ 59,700,000
orUS$6,633,333 per annum
Loan is US$15,000,000
Interest 14% per annum US$ 2,100,000
Uruqhart
Yearlybauxite shipments of 1,300,000t @ $10.50strong cash margins - ASX 12/9
1,300,000 X$ 10.50 = A$ 13,650,000
Mining life5 years
Totalpositive gross cash flow A$ 68,250,000
Shares
CurrentlyMLM have 322.400,000 millionshares on issue
Aftermerger plus 579,599,260
total 901,999,260
there afurther 134,828320 shares that can exercised
throughoptions
plus aproposed 66,825,000 sharesto be issued to Pala
Whoeverthought of this is a genius, looking at the above I just do not see whywe want to merge.
I probably havemade a mistake somewhere, but not that far from the truth and correct me where I am wrong.
