I don't really buy the EV argument. If I have equity of $100m, and debt of $1b, the EV is $1.1B, but equity exposure is still the same (i.e. the bank is still owed the $1b). It's what you do with the $1b which gives the leverage to the equity component, if I can use the $1b to create an additional $1b of value, then I have created real value.
The key to getting the debt funding doesn't have anything to do with EV, it simply means we are in a position to obtain (hopefully significant) returns on that debt.
Happy to be proven wrong.
P.S. I really hope we don't get taken over, I want to own this business for the next 20 years + as it has the potential to become a serious world class mine over the next few years.
- Forums
- ASX - By Stock
- RES
- good news
good news, page-6
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)