aknahow

John Tumazos: Benefiting From the Duluth Complex

Thanks, very informative.



Wording could be better in some parts. Anyone really think this is clear?


JT: I estimate that Duluth can spend a $1.5 billion to build 40,000 tons a day, and institute a dividend in 2018 when it goes from $20 to $40 and pays off 10% debt in 2019 and half a billion in cash in 2020 year end. And I estimate that from 2018 on, it’s trading at little more than $2 a share, which I think would be worth $30. So, I am saying $15.

Why not say, "And I estimate that from 2018 it will be trading at $30 up from a bit more than $2 now. So I am saying $15 as a target.