Post by
NineLives on Jan 09, 2023 7:43am
Armchair scribbles
Always fun to put pen to paper to figure out the true value of a company using the minimum values available so as not to glorify expectations.
Breakdown.
109 million shares outstanding.
Terralogic geological services
9 month revenue $15.4 million
9 month net earnings $229k
What value can we put on this subsidiary ? Well companies with similar revenue and shares outstanding trade in the 20's to 40's so low ball 20 cents.
Cash and fixed assets $15 million. So once again low ball 15 cents for that part of the balance sheet.
Royalty program. As mentioned just one net return could give 40 cents a share. So low ball the whole royalty program and say 50 cents.
Claims, now this is interesting as many claims from last exploration by EPL and previous owners show some good blue sky potential. If a company was listed with just these claims in their portfolio and just over 100 million o/s I can see them trading 25 cents a share easy.
Total minimum value of EPL at the current date and business cycle based on low balling all their holdings would be $1.10 per share. Now you all know why I'm so excited about their future share price.
Onwards and upwards. Please add anything I may have missed. Thank you.
Comment by
Grassyknoll on Jan 09, 2023 3:54pm
Great arithmatic NineLives. I agree that those are minumum numbers and don't include the blue sky potential of the Vulcan Sullivan target! Thanks!