RE:MWX Davis Value AnalysisI have a couple comments on your share price evaluation. I'm not sure that using a P/S ratio is a fair evaluation here and I would probably lean more toward a P/E ratio. Why? Because the margins vary significantly from company to company. Additionally, I'm not sure that I would use the mining sector as the comparison because this business is drastically different than traditional mining.
Using the same source that you did (GP interviews), he has consistently projected them to exceed 100m revenue per year with margins which could exceed 20%. We don't know if these numbers have any validity whatsoever, since they have not shared any production information from the PP yet. Even if they did share, it may not be trustworthy information until it is proven by the Tennessee PP running for a month. However, you can use the $100m revenue and 20% margins and apply whatever P/E ratio you feel is reasonable. I believe this will likely be an even higher share price.
Futher, MWX has indicated their intent to spin off the mining operations into a separate company. Why would they do that? There are multiple good reasons, but one of them is that without any traditional mining, they may be considered more of a technology company or even get into the high P/E ratios earned by ESG companies.
Of course all of this would rely on:
1. Proof-of-concept that the technology works on a commercial scale.
2. Ability of MWX & Davis to properly execute an effective business plan.
3. ETI lawsuit being settled or dropped.
4. Promoting their story to the appropriate inventment arena
Good luck to all of us. I still think 2022 will be a good year for us!