MY NEW BESTEST FRIEND

Not sure what Baupost did to piss off Kim Palacios, but all I can say is this person is my newest bestest friend.

Third installment written by Kim about Baupost and little old Melancthon.

Thanks from the bottom of my cold black heart Kim, I think it thawed a little when I read this.  And honestly, thanks. 

EXCERPT
The economics of The Baupost Group’s Ontario mega-quarry investment continue to unfold strangely, with new statements made in a January 12th Town Hall Meeting between Highland Companies executives and local parties adding clarification. 

Back-of-the-envelope math once told a story that estimated $43B profits for the mega-quarry project. This was based on the assumption that most or all acreage named in the proposal (2,316 of Highland’s 9,000+ acre holdings) would be used for the extraction of aggregate, and would yield an estimated $18M revenue per acre. Yet, pointed questions around the specific use of the land told a different financial story.

Most notable are extraction volume projections that fall far below early estimates, a useful life operating period that doubles the benchmarked average, a reinforced commitment to limit the market to Ontario Province, and cost concessions that will further erode profits. Messrs. John Lowndes (a co-owner), John Scherer and Joseph Izhakoff, all principals of the Highland Companies supplied the referenced clarifications at the meeting.

Full article here:
http://www.valuewalk.com/2012/01/baupost-might-lose-money-on-mega-quarry-investment/#.Tyct6MX2a8A