OTCPK:BLILF - Post by User
Comment by
SmilingDogon Dec 09, 2020 3:20pm
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Post# 32069738
RE:RE:RE:Finally
RE:RE:RE:Finally Option 2 (assuming LPI consolidates them) would be a nice immediate payout given its discount to its proporation of its project NPV (vs. LPI's proporation of its project NPV). I'd probably still hold onto my new LPI shares though given what would be realized in option 1.
Option 1 would be an amazing medium-term play though. DFS shows annual project cash flows of over $160M per year. BRZ's share of that (18%) is $29M of cash flow per year. Even if they dilute away 50% financing the project (this would be conservative given project-level equity + debt), thats $15M of cash flow for a company valued less than $10M. Even at a 15% FCF yield (again very conservative), that's a $100M valuation. That's 10x today's valuation (or 150% annual cash flow yield per share)!