PINL:HYKUF - Post by User
Comment by
elduckyon May 10, 2022 1:23pm
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Post# 34671005
RE:Day or two
RE:Day or twoMaybe they magically sold everything at spot, are making $300/tonnes, and will have quarterly cash flow of C$100 million. The insane part is that is a real scenario!
I doubt it obviously. They likely have 50-60% on contract, hopefully very good contracts, anything over $170 is a win, and I expect it could be over $200. We can hope their costs are down to $90 as claimed, instead of the $110 we saw. The rest at spot.
A more conservative scenario is they are making $100/tonnes, so they are 'only' going to make C$35 million in the quarter. Plus another $20 million for the 5.5 weeks since the quarter has ended to now. Hopefully it's at least this much with no surprises. What are they worth sitting on 40-50 cents/share in cash and growing? More than 65 cents I would assume.
Hoping for the best.