CAS haven't given a definitive selling price for their product.
The ~$50 figure I quoted was a very conservative back of the fag packet number I'm currently using to value the company. I came up with this number based on Morgan's revenue model for F14.
Morgan's quote 780,000 tpa with a met recovery of 33% which gives 257,400 tpa of product. From that product they estimate revenue of $17.7 million. So, $17.7 mill divided by product tonnage of 257,400 = $68 per tonne.
However, what you have to keep in mind is that currently they are also selling some of the fines which will produce less revenue, so I have allowed for >20% reduction on that $68 per tonne figure to allow for the fines. As I said, it's only a guesstimate as we don't know the volume of fines being sold.
Coming up with the current ~$50 figure is obviously not an exact science...lol....but it does help me with trying to put a conservative value currently on the project.
The big kick for CAS will be when they process the fines and met recoveries increase to 70% of ROM, in comparison to the current 33%. That, along with an increase in tonnes per year processed will add considerable value to the project.
To my way of thinking, this will start very soon (waiting for an announcement on magnetic separation unit) and ramped up during the next 6 to 9 months.
If you listen to yesterdays BRR Webcast you will hear Paul mention that during the interview. From his tone, it's not a matter of if they will introduce the mag. separator, but when. He indicated during that interview that they would have the new product (treated fines) in around 6 months.
Hope that helps.
Cheers.
CAS Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
