pessimistic target price.... up 375 % Given the historical price realization around EPL 3403 and the robust diamond price outlook, our base case at US$350/carat appears to be conservative.
"To factor in the incremental shareholder value pursuant to the share dividend payment for AFA’s interest in Haib Copper project, we have added US
.03 to equity value per share derived by discounting future cash flows. This is based on our assumption that the company will transfer 50% of its interest in the project to its common shareholders.
Taking our base case, we arrive at a fair value of US
.24 per share, a 497.1% upside from the current trading price of US
.04/share. At US$450/carat diamond price assumption, fair value per share comes to US
.31 giving a potential upside of 665.2%. Even a pessimistic price assumption of US$300/carat yields an upside of 375.7% from the current levels. "