I see the following base case as still godd value given the current market cap.
1/2 the high grade is basernite and extractable with low cost acid leach. Leaving us 20 million tonnes and 800000 tones of REO.
1. We desing a 20 year mine life, 1 Mt pa for 40000 tonnes of REO.
2. After extraction we produce 35000 tonnes in concentrate or 100000 tonnes of concentrate at 35% REO.
3. There is demand for 35000 tonnes of REO from PEK in 2016
4. There is a REO price of $90/kg
5. We sell the concentrate for $10/kg which would be roughly $30/kg of REO.
6. This genreates $1 billion in revenue.
7.Just say it cost $1/2 million per day to operate the mine and leach facility, this leaves ~$800 million pa
8. 50% for tax and roaylties leaves $400 million NPAT
9. This could support a market cap of $4 billion, 100 x our current level.
10. If we can build the mine, leach facility, roads and rail loading for less than $1.5 billion (~2-3 year pay back) then it should be attracitve for most major resource investors.
It seems only 2, 3 and 4 are holding us back. Point 2 should be close to being resolved in ~6 weeks and resolved by the end of the year. It seems 3 and 4 are holding us back.
- Forums
- ASX - By Stock
- PEK
- investor presentation
investor presentation, page-13
-
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add PEK (ASX) to my watchlist
|
|||||
Last
21.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $55.95M |
Open | High | Low | Value | Volume |
21.0¢ | 21.0¢ | 21.0¢ | $19.85K | 94.52K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 37161 | 20.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
21.0¢ | 4392 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 37161 | 0.200 |
2 | 56465 | 0.195 |
2 | 32631 | 0.190 |
2 | 105000 | 0.185 |
2 | 39000 | 0.180 |
Price($) | Vol. | No. |
---|---|---|
0.210 | 4392 | 2 |
0.220 | 30000 | 1 |
0.225 | 38380 | 3 |
0.230 | 109368 | 5 |
0.240 | 60000 | 2 |
Last trade - 10.13am 15/08/2024 (20 minute delay) ? |
Featured News
PEK (ASX) Chart |
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, CEO & Managing Director
Charles Armstrong
CEO & Managing Director
SPONSORED BY The Market Online