RE:RE:RE:RE:RE:RE:Rbc app These numbers don't take into account (AISC) nor taxes nor any other costs. But currently SCY say 2500 TPA of HPA is the initial goal, but let's say they are being conservative. I don’t know if 2500 tpa is their share or the total for both parties I suspect it’s only SCY’s share. GP keeps expectations very, very, very, low. And I know 5,000 TPA is on the table sorry, likely on the table - don't ask. But let's say they split 5000 tpa of HPA from one mine deal with NGM in 3 years. 5000 tpa / 2 = 2500 tpa of HPA for SCY x $25,000 per ton. $62,500,000… (What it f it’s 10,00 tpa split) At 2500 tpa Suddenly SCY is earning (EBITDA) sixty two million five hundred thousand dollars per annum from 1 mine deal alone! Let that sink in. Lets say 400 million shares outstanding 400 million/ $62,500,000 = 1X earnings is 0.156 roughly where we are. The market will very likely put a multiple on it of 5x to 10x so at 5X it's $0.76 per share. At 10 x it's $1.56 That's the potential on just 1 deal. Now we also need to appreciate that the market might only price n 1x or 3 x because of managements lack of whatever... So this is where we need the Scandium story ramped leveraging Rio Tinto and light weighting we also need the patent to really see the potentials start to get factored into the market multiples. Now we can project 3 mines with a patented tech, do the math. Lets now say SCY controls 7500 tpa of HPA at $25,000 (conservative?) per tonne at 5x and 400 million shares outstanding that would equal $2.34 and at 10x $4.68 / share. A small cap cash cow ripe for a takeover. Which any large copper miner of PE firm or long sighted Gold company would not want to get it's hands on a patented way to rescue HPA from waste piles securing ESG credits in the process helping inclusion into ESG funds under management at 4-5n purity. Applied across 3-50 mines world wide. Let’s do the math on 10 SXEW copper mines. WOW. This will not remain in our hands for very long folks. But they have to execute very carefully going forward. That's a risk here, as with all growth companies - there’s execution risk. Do they strap on debt to grow to fast? Do they need debt at all? Because theoretically SCY could fund future growth through operations. Which the market would love GP’s conservativeness which drives us crazy, might very well become a great attribute to the growth at a reasonable rate story.
Also consider the Scandium story is not priced it at all. Also often growth stories are priced well above 10x earnings. Look at some of the zero revenues lithium juniors. Crazy valuations. CYP, who's only hope is Abermarle buys them out, Lithium Americas priced in the billions… 10X may be conservative. Keep in mind Rio may need Nyngan in 2-3 years. SCY is getting zero valuation from the three scandium assets.