Fair value market cap analysis?, page-24

It’s going to be difficult to educate someone who is unable to comprehend the project (or the industry) but here goes:

“What would you value their infrastructure at and why.”
The mill, paste plant, winder etc might well have cost $5-7m but Aul bought it and the rest of the company for a fraction of that when no other company wanted it. The office and accom on the main road had a suggested value of $1.9m in a recent post. Get real - it is a two story renovated general store that might have a resale holiday home value of $50,000. Re-fab cost and re-sale values are diametrically different.

“What would you value their processing plant’s future cash flow at?”
A very strange question. Any revenue production is wholly dependent upon either toll treating ore from a non related operation or accounting for the cost of processing Aul production. At this stage I would assign no value.

“What would you value their 667 square kilometre tenemetre at?”
At this stage it is a liability as the company has an expenditure commitment to the State Government on these tenements to maintain their good standing. It would appear that they are having trouble meeting their commitments with their major project right now.

“What is your cost estimate for getting Morning Star and ROD to operations”?
Wouldn’t it be logical to determine whether there is something worthwhile mining before going to the trouble of assessing the economics?
Until that happens your question is unanswerable.