After 10000 MT plant is up and runningLets make a whole bunch of assumptions here.
A million kilos a year of production, assuming 5N product at a minimum with a CapEx per kilo cost of 4$ USD per Kilo, and spot price stays in the 17$ USD range. - Assumption according to their presentation.
Forward sales contracts negotiated at 15$ USD per kilo - Assumption.
This means 11 million USD per year in EBITDA - Aprox.
Lets assume again a PE ratio of 15. Could be higher, depends on the market. Sector average according to Reuters is 35.99, I find that too high.
15 x 11 million = 165 million Market cap, or just under a dollar a share. If all my assumptions are correct and I do think they are extremely conservative. If we bring up the PE ratio to 36 we are looking at a share price north of 2.30$
Anyone done any kind of similar math? I know there are alot of moving parts here. I might have gotten something wrong.
TS