RE:End November NearsThe Inverse, Present and Future
The Present:
Todays $3.10 SP, 60M shares F/D = MCap $186M
If we have a $21B Insitu Value (3MT’s Pure Graphite x $7000 profit = $21 Billion In-situ Value)
Then our present $186M MCap would represent 0.0088%,or less than 1% Insitu.
Should move to 5% after “Resource Estimate” release.
The Future:
On the Cash Flow at Production projection ($700M Revenue less taxes (40%) / 110M shares = $420M / 110M sh = $3.81 EPS with a10x Multiple to Earnings (over 27 years) supports $38.10)
12 times current SP (includes a Share Structure with 50M more F/D shares)
EPS and the Multiple there of, are prices derived from/at Production, 2-3 years out, but post PEA, when it is better known the “Value/Tonne” or the Value given through “Off-take” agreements between now and production, should influence and increase SP from “RE release 5% Insitu Value” to first year Production Revenues and EPS Cash Flow Model.
Today $3.10………RE $19.09 (inSitu 5%)………Cash Flow SP$38.10(eps$3.81)
55M shares o/s…….60M F/D…………………….110M F/D
Today………………end Nov2013………………….2016
Cheers, Mark