Eml6 May 2020 11:54
So as it stands eml has a NPV10 of $1,14billion based on a average EBITDA over a 20 year mine life of over $230 million pa.
That's with the MOP. (Muriate of potash). However if they go down the route of treating the MOP into SOP (sulphate of potash).
That then increases to a NPV10 of over $1.8 billion with a average annual post tax free cash of around $300 million pa. Helped by the fact that SOP fetches a higher price than MOP. Plus the by product of the salt after treatment.
So I would hope to see EML sp to be around 6_10 p range when the FS arrives. Then the bigger news will be the finance.
EML have already been approached by a large EUROPEAN bank with a offer for finance. Then you have off take agreement with upfront cash for x amount over x amount of years. Usually at a discount to spot price of say 25/30% give or take. Then EML will probably need to raise extra funds to play their part in the financing. But I think that will be further down the road imo.
So IMO and it's just my opinion. I would hope to see sp around the 50p range by year end. With a few peeks and troughs along the way. Start of mine build I would hope to see around the £1 mark. Production start up I would like to see double that.
2/3 years after that, I can see dividends being paid out. Bit conservative on my prices I think but who knows what will happen over the next two years. One thing is for sure. You don't need gold or silver, or even a car. But you will need FOOD to feed the ever increasing population.