Independent Investment Research Report, page-7

Great to have our first research report out, thanks for posting @Lawuki.

Now, I'll get straight to the point - it's rubbish. This could have been initiated 6-12 months ago when we were at 5c if they are just going to base their valuation on 1.5x EBITDA - which is ludicrous. The .57c share price assumes 545m shares on issue (and a CR at 50c) which gives us a valuation of AUD$310m which is 1.5x EBITDA. I'll take the $310m market cap once Alcoa commits and we have an offtake

They have also used HPA price of USD$24,000/t, however these guys initiated coverage for ATC last year and used a LOM HPA price of USD$32,500/t - WTF? (see below). If they think ATC's base case of USD$26,900 is conservative, then what do they think of FYI's USD24,000/t is?



ATC coverage



These reports are still referencing peer production from 2014 - pleeeeeeease, how embarrassing!


When they initiated coverage for ATC last year, they used a global average EV/EBITDA of x10 (see below)


FYI coverage they quoted EBITDA range of 5x to 8x


Also, the .57c valuation includes an additional $50m buffer for working capital which they did not include in their ATC valuation at all. Strange eh?


Anyway, great to have our first coverage, just cast your minds back a few months ago when we were at $12m market cap and our first research reports gives a $310m market cap target.

Lots to play out in the coming weeks and months which none has been mentioned in the report. Giddy up!