Post by
BCdude on Aug 21, 2015 4:05pm
Nice resource update
Lots of questions still to be answered about how the company will move forward with this. My hunch is short- to mid-term there will be DAPR, which has very nice margins and will allow the company to start producing cash flow. Long term, however, this resource is large enough that a strategic partner of size (such as Vale) makes sense, and will unlock the value of a much larger operation.
I can see an NPV of $750 million to $1 billion with a 30% to 50% IRR. Keep in mind Focus only owns 70% of this deposit. Nevertheless, this is still amazing news.
Depending on how the company finances the project moving forward, there is 10 bagger potential here. There are always plenty of risks, too, but I feel comfortable saying that the risk-reward at this level is much more skewed towards reward.
Still, junior resource stocks are incredibly risky. Don't bet more than you can afford to lose.
Comment by
wayned on Aug 21, 2015 4:35pm
What a relief that there are finally other people posting here . Won`t be too long till trouble makers show up . I think there is an option on the other 30% and they`ve made a payment toward it . I have to go back and check . These guys always come up with the goods .
Comment by
wayned on Aug 21, 2015 6:36pm
Sorry . Not an option but a right of first refusal .