At $1 SP can be easily validated as that would be a MC of ~$486 million requiring ~$48M profit at a 10 PER.
As stated, to get the ~$48M profit would require:
24/t margin x modest upscale to 2 mt pa. not difficult math and not out if the question. There's your 48m pa. When you consider that they do state a 4-5 mt pa may be on the cards.
Obviously, the first step will be the .8 mt pa start up first that would represent a SP of ~40 cents on a 10 PER which is viewed as a low risk, low cost start up.
The big upside here is that it has been stated that a "4-5 mt pa" may be possible which would mean a multi dollar SP.
Hence, if the JORC walks then a significant re-rate would be on the cards.
If the take off talks walk then Housten we have a problem.
QBL Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
