Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Agreed Vectran, I do not agree. KML is the icing on the cake. The real hidden value are the SFR licences, A4 etc..... KML will take time to prove up.
Agreed - sorry if it wasn't clear below the valuation was of 'investments excluding royalties' [i.e. the KML project].
You could either value KML at cost (~£3m), implied value at last capital raise (~£5m - May 2019 valuation), value based on recent transaction (i.e. the MOD/Tshukudu transaction at ~£2100/km2 which would give a value of ~£9m), a convoluted DCF based on expected volumes/prices etc. etc.
I don't think cost is the most reasonable basis to value it on.
My main point was that KML is a key unknown and a key driver in potential valuation upside from here.
I don’t think you can just count KML as zero value . Therefore it should be added at cost at this point.
Excluded KML as view it as essentially the 'royalty' - including the KML 2% royalty and the uncapped US$2M royalty.
Agree the uncapped 2% NSR is the key value driver. Which we don't have a market value on.. yet...
The capped royalty of $2m usd for T3 is pretty much guaranteed
The value of the uncapped NSR 2% will likely be the single biggest value accretive part of MTR for a long time & a dividend payer.
You currently can’t give a value to the KML 2% royalty.
Have you included KML private Co in that? We have put about 6m usd in that
I get a value of £23m of investments excluding royalties. This being £22.2m of public equities (including GGL), £0.5m of private investments (at cost, largely Pan Asia Metals; Thailand and Logrosan written off), £0m of options (all out of money?).
The remainder of the value could be attributed to:
- Net debt (incl cash) (was ~-£0.5m at 31 Dec 2019 (cash, bank debt etc)).
- Value of royalties (..... key question - Simon Thompson (IC) has a valuation based on MOD transaction).
Currently no value attributed to the royalty in the balance sheet.
The unknown value is the Royalty over SFR licences ex capped T3. We should get some indication once the A4 drill program has finished. Prelim values seem to be around £40m plus but will rise exponentially as other discoveries are found or on production.
Market cap 38m v investments value of ? Can anyone help.
Yeah, and why I did ! ATB
I still cannot fathom why we have invested in Thor.