MWX Davis Value AnalysisThis is an assessment to value (per share) what a 10 ton per day precious metal recovery mill is worth for the MWX share price:
From Investopia: Price-to-Sales (P/S) Ratio = Market Cap (#shares x Share Price) / Revenue
Or, rearranging the formula yields: Incremental Share Price for the Venture with Davis = (P/S Ratio)* Revenue / # Shares
Metals & Mining Industry P/S average: 2.79 (2021 average from csimarket.com)
Share Float: 342,766,081 shares
Venture with Davis: 45% Davis, 55% MWX.
Revenue from 10 ton per day plant: $100 MM per year (from GP interviews), Therefore, MWX revenue share per year from venture: $100 MM x 55% = $55 MM
Incremental Share Price from 10 ton per day mill = 2.79 * $55 MM / 342.8 MM Shares = ~0.45/share
Once the Tennessee plant is up and running, share appreciation should prove out this value. Scaling the venture should be straight forward to increase this to a high multiple investment. I’m holding onto my million shares… Good Luck everyone!