Are all pi's missing something here18 Apr 2018 10:42
The Project�s NPV of US$US349m is significant, especially when compared to our current market cap of ~�5m. With an IRR of 122%, 1.2 year payback and low development costs, we firmly believe that Mahenge is an attractive asset for development. Crucially, the Scoping Study was limited to just 25% of the Project�s current resource, which forms Stage 1 of a planned staged development programme. Accordingly, with an upgrade in throughput there is significant potential to improve the Project economics even further.
So a conservative estimate of a NPV of �245m and the maximum drawdown during the construction of the Project is �24.55m and the after-tax payback period is 1.2 years !!
Either we sell the whole project and make a fortune, or we farm out for say 20% of the share capital (good deal for both parties) and we are left with 80% of a funded project with an NPV of �196m vs our current market cap of �5m - so a 39 x bagger !!! Am I missing something here ? Why does nobody seem to believe our numbers Nick ?
AIMVHO