The question is:
Why an investor have to pay 800Million to built a mine and get maybe 50% from ELM, if he can buy ELM complete for 60 Million Market Cap.
The problem is:
The next year they spent only money for studies, but they will not drill to expand the resource, so there will be no more value.
And the directors spent a lot of money for their saleries and flying around the world.
We have one of the biggest resource and the best quality of potash in the world, maybe if they drill more we will have the biggest in the world, but no one will pay the fair value at the moment. If you look for the NPV normally ELM must have a Market Cap for an Take Over of minimum 900Million. If we have a normal market the buyer must pay 50 to 60% of that. This would be 1 to 1.2 Dollar per share.
But at the moment it looks like that the longtime shareholders will be crapped.
K2P Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
