Let's try a valuation, page-5

First 5 Last

Share
Profile

Follow
gonegassed

13,783 Posts.

01/06/15

14:05

Post #: 15389737
Share

Originally posted by BJH3 ↑

This is all my opinion, and others may have a better knowledge, but it's meant purely as a discussion starter

http://wap.business-standard.com/ar...t-projects-of-rs-5-328-cr-115053000857_1.html

From the NLC press release, we can see that NLC have given approval to develop 2 new lignite mines and power stations. Given Mr Modi's attitude, they certainly won't be the dirty lignite burning power stations that we have in Australia. They will need to employ something like ESI technology.

We see from the article that one mine will be 2.25 million tpa, and one will be 1.9 million tpa - a total of 4.15 million tpa.

If ESI even negotiate a measly $5 per tonne technology toll, that will be an income of over $200 million per year, which would be mainly profit. In reality, the toll figure could be as high as $10 per tonne, or an income of $400 mill pa.

Now to convert that to a SP. For a growth company like ESI a PE of over 20, or even 25, would not be unreasonable. But to be conservative, let's assume a PE of 15, which is around the ASX top 100 average. That could easily equate to a market cap of $600 million, or a SP well north of 20c

And that's just for the proposed 2 mines.

Other mines?

Matmor?

You can see the absolutely huge potential here.

It's going to be massive

Expand

a total of 4.15 million tpa.

If ESI even negotiate a measly $5 per tonne technology toll, that will be an income of over $20 million per year,

Sorry ..its not 200m pa..its 20m pa .

ESI Price at posting: 2.4¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

Reply

Top Stories

PL3

Patagonia looks to raise $2.15M for South American exploration and development

SRL

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

OCC

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

SPR

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

MSB

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

There are more pages in this discussion • 24 more messages in this thread...

First 5 Last

Add ECT (ASX) to my watchlist

(20min delay)
Last 0.4¢		Change 0.000(0.00%)		Mkt cap ! $11.10M

Open	High	Low	Value	Volume
0.4¢	0.4¢	0.3¢	$22	6.218K

Buyers (Bids)

No.	Vol.	Price($)
47	18713923	0.3¢

Sellers (Offers)

Price($)	Vol.	No.
0.4¢	12658157	23

View Market Depth

No.	Vol.	Price($)
47	18713923	0.003
19	13295353	0.002
10	17300024	0.001
0	0	0.000
0	0	0.000

Price($)	Vol.	No.
0.004	12658157	23
0.005	5697103	27
0.006	5239567	10
0.007	1118334	6
0.008	332213	4

Last trade - 15.38pm 09/07/2024 (20 minute delay)

ECT (ASX) Chart

Let's try a valuation, page-5

Patagonia looks to raise $2.15M for South American exploration and development

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Let's try a valuation, page-5

Top Stories

Patagonia looks to raise $2.15M for South American exploration and development

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News