HPQ Silicon Inc V.HPQ

Alternate Symbol(s): HPQFF

Metals & Mining Gold Industrial Metals & Minerals

HPQ Silicon Inc. (HPQ) is a Canada-based technology company specializing in green engineering of silica and silicon-based materials. The Company is engaged in developing, with the support of technology partners PyroGenesis Canada Inc. (PyroGenesis) and Novacium SAS, new green processes to make the critical materials needed to reach net zero emissions. Its activities are centered around the three pillars: becoming a green low-cost (Capex and Opex) manufacturer of Fumed Silica using the Fumed Silica Reactor, a proprietary technology owned by HPQ being developed for HPQ by PyroGenesis; becoming a producer of silicon-based anode materials for battery applications with the assistance of Novacium SAS, and Novacium SAS is engaged in developing a low carbon, chemical base on demand and high-pressure autonomous hydrogen production system. The Company operates in a single operating segment, segment, being the sector of the transformation of quartz into silicon materials and derivative products.

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HPQ Silicon Inc > Valuation

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Post by lscfaon Dec 06, 2024 4:22pm

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Post# 36350163

Valuation

Co. only needs two 1000 tpy FS plants to justify current stock price. Demand for FS is increasing but incumbents not building new capacity due to environmental concerns.

No of FS plants	1	2	3	4
Capacity tpy	1000	2000	3000	4000
Revenue US	10,000,000	20,000,000	30,000,000	40,000,000
80% plant ebitda	8,000,000	16,000,000	24,000,000	32,000,000
50% to HPQ	4,000,000	8,000,000	12,000,000	16,000,000
HPQ overhead US	(4,000,000)	(4,000,000)	(4,000,000)	(4,000,000)
30% tax	0	(1,200,000)	(2,400,000)	(3,600,000)
Net income US	0	2,800,000	5,600,000	8,400,000
Diluted shs o/s	405,624,670	405,624,670	405,624,670	405,624,670
eps US	$0.0000	$0.0069	$0.0138	$0.0207
Fx rate	1.40	1.40	1.40	1.40
eps $Can	$0.0000	$0.0097	$0.0193	$0.0290
Multiple	20	20	20	20
Sh value	$0.000	$0.193	$0.387	$0.580

	300 M2/g	200 M2/g	150 M2/g
Ebitda	85% - 90%	83% - 88%	72% - 80%
Payback	1.16 - 1.11 yrs	1.5 - 1.4 yrs	2.7 - 2.5 yrs
Size	1000 tpy	1000 tpy	1000 tpy
Capex per kg	$10 US	$10 US	$10 US
Capex	$10M US	$10M US	$10M US
Cash flow /yr	$8.62M - $9M	$6.67M - $7.14M	$3.7M - $4M
Revenue / yr	$10M US	$8M US	$5M US
Rev / kg	$10 US	$8 US	$5 US