Riverrock can you do future calc on NEXT earnings potential?I am curious that NEXT might be able to get in terms of pricing for their future concentrate at 17k tons/year for first phase of the mine. This will improve their profit margin and will therefore also improve the pricing of their stock share price.
Just a rough off the cuff example as I don't have previous mining cost numbers from NEXT's feasibility report.
Mine concentrate: $1200 US/tonne x 17,000 tonnes/annum graphite conc = $20,400,000 gross
Mining, processing, shipping to the buyer cost: $700 (?) x 17,000 = $11,900,000 cost
Profit: $8,500,000
Divide this by 460 mil shares (will be higher when NEXT finances)
= 1.85 cents/share (high estimate).
Lets then go with 1.5 cents/share, and P/E multiple of 15:1, and we get 22.5 cents/share for stock at their 17,000 tonnes/annum for concentrate.
Now if NEXT expands to 51k tonnes/annum, profit triples, and shares go to 67.5 cents
(assuming no increase in graphite concentrate price)
And this doesn't take into account any of the Green Giant Vanadium discovery.
Maybe that could round us up to $1 or even higher in a few years???
Any mining industry folks out there that can add more realistic values here?
Thanks Riverrock and others who may contribute more accurate numbers/estimates.