Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Copper1, thanks for sharing this information. No surprise that the share price is having a good day on the back of this news.
Beginerman, it is good news because in my opinion, it explains why the share price is not rocketing up. I don't know why Duferco are selling now, they may need the cash or are happy with their profit. Either way, the selling will stop at some point. At the moment, if current V prices are annualised, BMN will make a profit in excess of $100m, & the market capitalisation of the company is £161m. It makes no sense.
At the following average V price, net profit before tax for 2022 is estimated to be as follows:
$55 per kg - $82m, $60 per kg - $104m, $65 per kg - $127m, $70 per kg - $149m, $80 per kg - $194m
Current net debt is approx $57m
Share price is therefore a bargain currently
If current V prices are maintained in 2022, BMN will make a net profit in excess of $100m. The current market capitalisation of BMN is £153m. Either Duferco have placed the biggest sell order in history, or someone is taking the mickey at our expense !!
So if the average V price is maintained at $57.5 /kg in 2022, BMN should post net profits of close to $100m. On this basis, we are due a massive re-rate. On a personal level, I want to buy more BMN, but the only way I can do this is by selling some ATM, which I cannot bring myself to do !
The share price is massively undervalued on the tin alone with the current tin price.