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i hold a a significant proportion of my portfolio here, currently a large paper loss, which is madness for a PI like me to hold that many individual stock massive risk but........ with massive potenitial upside imo.... Driver101 id be delighted with half your numbers :-) holding long and strong 13 years until i can access my pension anyway!
Courtesy of Cyber from another board. This post before we had Carbon.
If everything is confirmed technically in the FS then VBR will invest their $30m and raise another $70m in debt, and construction can start, with first production in 2025. At that point we will have approx 500M shares in issue and could be making $100M profit after tax = £75M. Put it on a p/e of 10 = £750M cap and a share price of 150p. And the debt will be repaid after just one year!
The real bonanza comes when FAR use the cashflow from this plant (Phase 1) to raise debt (=no share dilution) for Phase 2, an even bigger plant. This is projected to create $400M p.a. after tax = £300m. Put it on a p/e of 10 and that's a £3bn cap, with 500m shares in issue = 600p share price... And probably a 30p dividend!
Any news on how they intend to finance the project?
I was really hoping we'd be back at 12p so I can load the boat.
The market hasn't caught up with FAR, the future divi alone could easily be 30pa more than today's sp with an sp of £4 to £6
Phase 2, with output rising to 22,400 tonnes per year. Combined NPV was estimated at over US$2 billion. Plus we now have a spin off (Carbon Black) correct me if I'm wrong but FAR's revenue from Carbon could be $1b Pa at today's price.
From RNS 1/7/22
Carbon Black
The potential output of this concentrate is potentially over 200,000 tonnes per year from Phase 1, or 800,000 tonnes per year from Phase 1 and 2.
One tyre manufacturer is currently testing samples as a prelude to commercial negotiations. Other manufacturers will be approached when the test work is completed.
Accumulating
From RNS March 2021:
""Construction funding rights:
In addition to the Initial Investment and Further Investment Rights outlined above, VBR will retain the right to further invest up to US$30m in FAR based on pre-agreed share prices. These rights will only be triggered in the event that FAR launches a process to raise capital for the construction of the Balausa Project and where the Initial Investment and the Further Investment have been exercised.
A summary of the terms are outlined below:
a) Right to purchase US$10m of additional shares in FAR at a share price of 25.0 pence per share, equating to a pre-money market valuation of US$150m, at the agreed exchange rate
b) Right to purchase US$20m of additional shares in FAR at a share price of 78.0 pence per share, equating to a pre-money market valuation of US$500m, at the agreed exchange rate""
So clearly someone in the BOD thinks it would be above 78p
Was just about to ask same question Rooty.
What’s behind the current rise ?
Thanks in advance anyone ?
On how much each share could be worth in a few years time?
Nice little upswing atm on no apparent news. Has helped me lower my average but am curious on possible reasons for the change in share direction.
The spread is a good indicator of share requirements, if it’s a narrow spread ie 2% then they are encouraging to sell. When it’s 6.5% they have share to sell.
As soon as there is buying interest Just no stock to sell ok yes will get a few small sellers selling for a quick profit but no large holders selling at these prices need to be way way higher.
Bit of selling there from folks looking to make a fast buck, understandable given a big spike on no news. Still, in the medium to long term this is only going one way, long term hold for me
GLA
There will be shortage for buying, as my previous post where are they going to find the shares to sell so many long term holders who are and where are the sellers going to come from ?
Seems very strong demand for these shares, premium to buy decent size order
Sure if not for Ukraine war this would still be mid 20s I clearly remember being 27p at the start and temped to sell at that point but as I have said on here before in for the long term and have bought more while price beaten down by world events.
Nice.
Tried buy order for 15k shares on ig, quoted 17.50p
16.49p for 25k shares quote
I’m holding for the long term. In 10 years I want to semi retire or retire. If this share does what we want, if good fortune is on our side, then hopefully when we cash in, we’ll be alright.
Same, holding on here with high expectations, will add more next month
Same here - I added a few more 13p but am out of cash - still have built quite a decent holding and am happy to sit back and wait for Sir Mick to do the magic!!
Could not agree more with you. I have not sold a bean of these shares and I just wish I had more cash to load up at these prices. I am holding this one long term. Happy to give it as long as it takes but potential of this is massive.
Us long term holders all know when the demand picks up the market will struggle to find shares to sell, there are so many long term holders sitting on their shares just waiting for the potential to be unlocked as we know it will.
Demand seems strong, quite for 40k shares 15.70p
Lots of big round share figure buys way out stripping sales of similar amounts - what an odd day!! I anticipate the original 74p remaining a realistic bottom line and will be holding long term. door