align note22 Mar 2018 08:28
Valuation
� million
At present following 3 cobalt licences being granted
If 5 cobalt licences granted
West African Lithium 11.25 11.25 Botswana Nickel & Platinum 0.67 0.67 Cameroon Cobalt 4.95 8.25 Cameroon Cobalt option value � less cost 3.76 6.80 IGS 0.90 0.90 BrandShield investment 5.89 5.89 Share portfolio 0.40 0.40 Sub-total �27.82m �34.16m Shares in issue 1,330,674,497 1,330,674,497 Per share 2.09p 2.57p Number of shares on a fully diluted basis 1,908,174,497 2,158,174,497 Cash from warrants & options being exercised �0.30m �1.65m Total �28.12m �35.81m Per share on fully diluted basis 1.47p 1.66p Source: Align Research
Our total valuation for BNR comes to �28.12 million which, on a fully diluted basis (1,908.17 million shares), results in a fully diluted value of 1.47p per share. If the company was to acquire a total of 5 cobalt licences in Cameroon, our total valuation would rise to �35.81 million, which on a then fully diluted basis (2,158.17 million shares) would equate to 1.66p per share. Accordingly, we increase our target price to 1.47p, compared with 1.19p previously, and retain our Conviction Buy stance.