GREY:FTPLF - Post by User
Post by
sculpin2on Aug 23, 2019 5:31pm
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Post# 30060556
FGE Current Enterprise Value
FGE Current Enterprise Value Current EV for FGE is ...
IQ loan $118mm
IAM loan $35mm
Converts $62 @ $0.07 = $4.3mm
Equity 15mm @ $0.14 = $2.1mm
Total EV = $160mm
Production capability is 190,000 tonnes
EV/production = $842/tonne
Sappi is increasing its capacity in South Africa at a cost of $2,940 tonne.
Lenzing is thinking of building a new DP mill in Brazil at a cost of $2,889/tonne. FID by end of 2019.
Would it be worth either of these 2 or any other strategic/private equity to offer $1,200/tonne for FGE. Less than half the cost of new build or expansion. They would also get the assets of the Advanced Bio Products. All depends on how long one assumes DP will be depressed, current mill reliability and whether the current Board of Directors and the their new advisors are relatively competent in resolving this crisis.
At a $1,200/tonne valuation there would be left $75mm roughly for CVD's & equity or 100% on the FGE.DB and maybe $0.80 for the common.