David Salisbury, Chairman of Passport Potash, discusses the recent preliminary economic assessment. Big Al likes what he has to say.
Click download link to listen on this device: Download Show
Click here to watch the video.
Many thanks cfs,
I interpret this as being positive. How about you?
A bit more to come re: my dd on this company.
Best,
Big Al
I view it as highly positive.
One of my criteria in choosing a company is that the BoD must hold a chunk of the action.
i.e. are aligned with the shareholder.
PPI has only evaluated 40% of its holdings and it has the following:
Pre-tax IRR 31.59% and an after tax IRR of 27.08%.
I see a mine!
I am sure that Frost See’s…..
http://www.youtube.com/watch?v=RGwgkqO4WFU&feature=youtu.be
From the youtube video featuring Salisbury linked to the Stockhouse banner,
PPI – NPV 10% = 2.94 Billion
This puts PPI at top of the list when comparing peer group NPV’s @ 10% (ranked in decending order) as reported by Crosenfield earlier
PPI – 27% IRR on 2.94 billion (per-feasibility)
WPX – 18.6% IRR on 2.44 billion (confirmed)
EPO – 24% IRR on 2.41 billion (pre-feasibility)
AAA – 36.8% IRR on 1.85 billion (pre-feasibility)
KRN – 21.1% IRR on 1.7 billion (confirmed)
Great PEA results and should get better as drilling is on going which may increase the resource estimate!!!!
I also use IRRs are one of the factors I use when buying shares of a company that does not actually have earnings, just as a P/E ratio is a useful measure after a company is in production.
I might also point out that some recent IRRs from companies with PEAs at the recent BMO conference were excellent for some of the PM companies. I recall one was at 78% and a couple were 40+% and 50+%. It’s always nice to have paybacks on capital expenses less than three years. That often means using financing which excludes dilution.
Another evaluation criterion I use for evaluation is NAV.
As Rick Rule has been saying there are some amazingly cheap companies right now in the resource are. It is relatively easy to find companies selling at 25% of NAV. I feel like a kid in a candy store at times!
Latest 10 SEDI filings (by transaction date) for PPI within the last 6 months [?]
Amended Filing
As of 11:59pm ET March 13th, 2013
Filing
Date Transaction
Date Insider Name Ownership
Type Securities Nature of transaction # or value acquired or disposed of Price
Feb 20/13 Feb 20/13 Shaffer, Laara Indirect Ownership Options 50 – Grant of options 208,000 $0.210
Feb 20/13 Feb 19/13 Frost, Phillip Indirect Ownership Warrants 11 – Acquisition carried out privately 1,250,000
Feb 20/13 Feb 19/13 Frost, Phillip Indirect Ownership Convertible Debentures 11 – Acquisition carried out privately $1,315,789 $0.190
USD
Nov 8/12 Nov 7/12 Bleak, Joshua Daniel Direct Ownership Common Shares 54 – Exercise of warrants 490,000 $0.100
Nov 8/12 Nov 7/12 Bleak, Joshua Daniel Direct Ownership Warrants 54 – Exercise of warrants -490,000 $0.100
Oct 19/12 Oct 17/12 Bleak, Joshua Daniel Direct Ownership Common Shares 10 – Acquisition in the public market 17,000 $0.185
Oct 19/12 Oct 17/12 Bleak, Joshua Daniel Direct Ownership Common Shares 10 – Acquisition in the public market 8,500 $0.195
Oct 19/12 Oct 17/12 Bleak, Joshua Daniel Direct Ownership Common Shares 10 – Acquisition in the public market 32,000 $0.190
Oct 15/12 Oct 15/12 Frost, Phillip Indirect Ownership Common Shares 10 – Acquisition in the public market 100,000 $0.200