Regenx Tech Corp. C.RGX

MWX Davis Value Analysis

[Halfblind]

This 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!

[BigGrayCat]

I 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

[Halfblind]

Thanks for your comments.  I did go down the PE route and this is where I ended up: Started with the stock screener on TMXMoney for Basic Materials/Other Precious Metals & Mining.  I stuck with the Basic Materials/Mining sector as that is how they are currently listed on the Canadian Exchange. Screened for smaller companies ( List of companies dropped to three (NSR, TFPM

[PinkCow]

Don't forget about funding. If they don't have enough cash on hand to get across the finish line, they will have to raise riase more money one way or the other (more rights, private placement,etc.). A loan would be the best option but without a pilot plant and a track record, that seems unlikely. The decision to build a new building will burn through more cash and delay any cash flow so I

[Halfblind]

From their Q3 2021 Update under Capital Commitments they say " ... The Company expects that any property and equipment expenditures incurred, based on future needs, will be funded from working capital and/or from operating or capital leases."  This a probably a vanilla statement, but I'm hoping that the PGM JV will provide adequate cashflow to fiscal needs or at least