RE: Sp3 Feb 2023 16:48
Donny averages mean nothing, say to yourself "based on my research i think the sp is going to X amount", lets say 2p, do i want
1.6m x 2p = £32,000
or
2m x 2p = £40,000
the only thing you are unsure about are your figures, here are mine...
KOD DMS Plant:
Assuming Spot Spod price 5.5% = $5000
Life of Mine (LOM) = 4 years (to be extended)
Expected Spod production per annum = 130,000 tonnes
Estimated c1 costs = $436 per tonne
Expected LOM revenue = $5000 x 130,000 x 4 = $2,600,000,000 (£2.6bn)
Expected revenue per anum = 5000 x 130,000 = $650,000,000 ($650m)
Estimated c1 costs per anum = 436 x 130,000 = 56,680,000 ($56.68m)
Estimated profit per anum = $650m - $56.68m = $593.32m
Estimated market cap (assuming PE of 5) = $593.32m x 5 = $2.97bn
x0.445 (44.5%) = $1,320,138,000 ($1.32bn)
Estimated share price = Market cap / shares in issue = $1.32bn / 19.841bn shares = $0.0665....£0.054p
or 5.4p per share
@ full 350mtpa production you are looking at? 2.7x that..... 14.58p
(***yes I know its 44.1% not 44.5%)
Not inc any LOM upgrades (extremely likely)
Increase in SPOD (currently $6000+)
Any of our Gold assets, some of which are close to maiden resource announcements.