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Can i ask you what you are basing your numbers on. I think it is alot higher.
Some buys showing up as sells thats why, mine for example.
Esm- Just one more thing in between your deramping comments. The P\B Ratio is currenty at 0.03 that is in the graveyard low, anything below 1.0 is considered below asset value.
Esm - 2 Questions for you. 1) Have you come up with a value yet seeing as you think you are clever? 2) Are you invested here?
MFL - Zinc prices have increased throughout December 2015, did you know that? The company also has no debt either, that means no debt repayments anymore. The future revenue is potentially better because afew zinc mines are going out of business, that is not the case here because they are not a mining business. Closing competition will mean potentially higher revenue and in rising market, based on predictions and last month increased, that not a bad sign. Positive news on the horizon i would say. This could all be a different ball game in 6 months. If you Value Companies then you will know that EBITDA (revenue) is a significant factor in the valuing process.
They have less money and no debt aswell. .. `Nickel, zinc seen leading world metal prices recovery. MINERS can look forward to better mid-term prospects as prices of metals in the world market are seen to recover by 2019, experts said at the Mining Philippines 2015, a three-day international conference organized by the Chamber of Mines of the Philippines. Mining and metals market expert Julia Ralph said at the conference that the price recovery would be led by base metals, such as gold, silver, platinum, aluminum, copper, lead, nickel, tin and zinc. Zinc and nickel will recover very strongly while lead and copper will have a mild improvement, she said.´ http://business.inquirer.net/199348/nickel-zinc-seen-leading-world-metal-prices-recovery
If neither of you understand Intrinsic value then on what basis do you make your basic investment analysis, your ability to deramp on negative news by the looks of it. Its very obvious.
Esm - I was looking for a logical numeric reason, not your negative deramping propaganda reason. Plenty of companies out there valued on future earnings potential. If you dont think that the increased zinc price will effect the business then there must be something wrong with you, thats whats suppressed the business in the later half of 2015. Thats not whats expected going forward. You clearly dont know what Intrinsic Value is either.
MFL - Elementary. Negative market sentiment to a ramped up anticipated outcome which in essense doesnt effect value.
MFL - And by the way, Only Warren Buffetts basic valuing analysis and others, thats all ´he plant is loss-making at the current zinc price - look at the half yearly report for how much they made at much higher prices - not much is the answer.´ Zinc prices have increased significantly and many Zinc mines have gone out of business because of that, Result = Higher Zinc Prices and more revenue. Nothing complicated about that. .
Esm and MFL are both shorters.
MFL - Hows your short position going? You dont like reality. Zinc prices are up dear and expected to increase throughout the year, thats because the cost of mining and the low zinc price probably put alot of mines out of business, thus less available zinc, resulting in higher zinc prices, thats going to have a positive effect on EBITDA. Also they dont have to look far for a buyer here either.
´If the valuation of the company as stated in the RNS is $63 million then 10% in sterling terms is £4 million, with close to 160 million shares in issue I make it that each share has a intrinsic value of around 2.5p. I am not 100% clear about the $3.4 million dollar loan from Korea Zinc as described in the RNS (see below) "During the transition period, outstanding invoices owed by KRP for 2015, current remediation costs and operating losses are expected to amount to about US$3.4 million and this will be covered by Korea Zinc and be treated as a loan to KRP. There will be no recourse to the Company for this loan" If the company is not liable to repay this loan then with no other debts other than those covered by the land sale agreement then its all about can the company grow from here? ´My personal view is probably not but I would not be bailing just yet, I honestly cannot see the viability for either Korea Zinc or Zox in us retaining 10% so maybe in a few months they will buy the rest from us hopefully the zinc price will continue to recover to boost the value of the plant, even then who will decide how much that is? The bottom line is the current NAV of the company is near 2.5p so why sell at 1p.....Hold and see how it pans out.´
Basic Valuing would start at $7.5 million EBITDA (revenue) x 5 = $37.5 million or 25 million pounds.
Converting that $5 million in pounds comes out at around 3.3 million pounds of Profit per year. What would someone pay for 3.3 million profit per year do you think? At 33 million thats a 10% annual return for example. At 16.5 million pounds thats a 20% return etc.
Esm - 50,000 tonnes of zinc per year at $1600 per tonne (todays price) future revenue = $80,000,000 pa. They own, technically 9.5% of that revenue stream lets say $7.5 million pa of revenue, lets say $5 million profit per annum but you think that represents less than 1p per share. Really. This isnt valuing but this is giving some idea of value here. They have no mining costs either, they create it from rubbish.
Esm - They have lost control of the main asset, not the asset itself. Its simple logic, try to figure it out, for someone who thinks that debt is value it might be a tough one for you.
Esm - The ramping fools were those expecting funding. You are cleary a deramper type, i have read afew of your other comments.
Esm - You sound like a deramper here if you believe that debt = value.
Esm - Nor does it effect future prospects, they are pioneers and still retain a stake in a good business with a rising commodity price, they are literally creating gold from old rubbish.