GREY:NDXFF - Post by User
Post by
Kalanuson Nov 28, 2010 11:51pm
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Post# 17769016
38 million vs. 15 million enterprise value
38 million vs. 15 million enterprise valueWhat is amazing to me is that they sell 950,000 tons at $75 or $55 dollars and then in perpetuity 16% of production at the same prices for $38 million dollars but their current enterprise value is only about 15 million dollars (an estimate based on 64 million shares-not counting 10 million warrants that can be exercised at
.25-and about 2 million in debt-which may be higher). This would suggest that the EV of the company should be much higher. For instance, the 950,000 tons is on 25% of their production--would this mean that 100% of their production would be worth 4x38=136 million? Or approximately 9 TIMES the current EV. Comments and/or corrections anyone? I know one would be the additional shares so that the price per share would not be expected to be nine times higher but still...... I guess we will see what Mr. Market thinks on Monday.