RE: Pricing mechanism adjustment - Hobson's deal7 Jun 2023 07:56
Jenkoo…
The share valuations depends in PREM case on future cash generation that is expected to be accelerating in trajectory manner as the production increases. This will ultimately depend on demands and supplies and the price of the commodity at the time.
PREM is almost debt free and with the help of Canmax heavy support ,the demands are huge and the increase in supplies must be there for Canmax to fulfil its contractual commitments to Ford and others. Canmax needs to optimise PREM production and supply the commodity to them.
The Market will take all this in to value the company and share price for the future projection but not necessarily the present situation ..
PREM is a growth company with accelerating cash generation ,then add to this other assets to be coming into this valuation too…
I think we will be heading towards 3p in 6-12 months period..
We need to see more details of the deal for more accurate assessment..so the next RNS will be more revealing ..
Just imo
GL holders