Post by
tess4344 on May 13, 2021 9:36am
RE:Cantor Fitzgerald Canada released a report on CRE...
I'm surprised that nobody mentioned Cantor Fitzgerald's Target Price for CRE.
VALUATION Based on our model for the Phase I Rose Li-Ta concentrate operation outlined above, the project would generate an average of ~$114 MM of free cash flow annually over an initial 17-year life for a project NPV8% of $733.4 MM based on our price deck of US$750/t CG concentrate, US$1,500/t TG concentrate, and US$150/kg tantalum oxide concentrate. We also apply corporate adjustments include G&A, current cash of $9 MM, near-term spending and in-the-money warrants (due within 12-months). Our resultant NAV8% is $741.2 MM or $3.95 per diluted share (Exhibit 13). To account for the development stage and unfinanced status of the project we apply a 0.6x discount multiple to NAV in-line with other resource development companies at a similar stage resulting in a target price of $2.40/share. As Critical Elements completes its permitting and arranges project financing (expected this this year) we would expect a re-rating of the stock higher.