I dont see what the problem is with rail to port.
* If BHP doesnt come to an agreement or JV, then we got FMG.
* FMG has an open door policy.
* So all we need to do is drill a little more and get the resource up to at leat 70mill-100mill.
* At this point, mining will get a green light.
* If BHP doesnt want to give us access, with 100mill under our belt and a feasability study, whats stopping us from coming to an agreement with FMG??
* Nothing!
So all you gotta do is GET SET with your holding.
** Ive alrwady proven beyond a shadow of a doubt that EVEN IF WE DOUBLE THE EQUITY VIA A CAP RAISING, AND USE 70USD LONG TERM PRICE AND 48aud COSTS, AND 3-5MILL PRODDY, THE EPS IS VERY GOOD!
They will be profitable, even if we use less than 70USD price.
WPG did a feasability study and they have costs of 55AUD due to high transport costs (trucking)
Like I said our EPS figure is HIGH even when using conservative pricing and DOUBLING the equity!
If we dont double the equity and use say 100USD and 3-5 mill proddy, the EPS is over $1.00 per share . Look at previous posts
*** If we use $100USD as the price we get :
100USD * 1.13 = 113
113 - 48 costs = 65AUD profit per tonne
3mill tonnes : 65 * 3 = 195mill
after tax: 136.5mill net
Now we currently have 85mill shares. lets use 100mill shares instead
thats $1.36 per share (and this is 3mill proddy not 5mill)
dilute an extra 50 mill if you may:
you get $1.00 per share approximately!
So this shares worth $10.00 on a PE of 10
5mill production : 65mill rvenue per tonne * 5 = 325
after tax : 227.5
using current equity (say 100 mill again instead of 85mill)
$2.27 per share!
add another 50mill shares if you may:
227.5/135 = $1.68 per share
On a PE of 6 thats $10.00 per share valuation.
OK now lets DOUBLE the CAPITAL:
3mill tonnes - 136net profit / 170 = 80 cents per share!
5 mill tonnes - 227.5/ 170 = $1.34 per share!
So on a price of 100USD you get anywhere between 80cents per share and $1.34 per share EPS IF U DOUBLE THE CAPITAL!
*** Now u tell me this outfit isnt undervalued!
YML can easily DOUBLE its share capital and raise the funds needed via 100% equity for the project if they need to build tracks to FMGs line, and EPS is STILL 80c-$1.30 per share !!!!
you cant escape the figures
ITS UNDERVALUED AS HELL! INFRASTRUCTURE DEAL OR NO INFRASRUCTURE DEAL, ITS GROSSLY UNDERVALUED. EVEN IF YOU USE A FORWARD PE OF 5, ITS GROSSLY UNDERVALUED AND IVE ACTUALLY DOUBLED THE SHARE CAPITAL WHICH WONT REALISTICALLY HAPPEN.
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use 100usd and dble equity eps 80 to 135 cps
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