I have tried to compare the figures from both Sprott and Euroz and see how they both came to their asset valuation using the SOP method. I tried to do my best to match their associated terminology
Sprott (the gold expert, the group that actually did the site visit) clearly values the gold a lot higher than Euroz and I probably trust Sprott more on the gold assessment but Euroz puts more on the lithium side and have clearly outline the demerger as catalyst with Sprott not making any specific highlights on lithium
SOP Valuation (FFX)
Sprott
Euroz
1
Morila NPV
$631m
$242m
2
Ounces Outside of mine plan
$20m
0
3
Costs
-$96m
-$28m
4
Exploration
$25m
$50m
5
Cash
$20m
$27m
6
Unpaid Capital (new equity)
$4m
$20m
7
Debt
-$10m
-$7m
8
Goulamina
$129m
$220m
9
Total Valuation
$723m (73 cents)
$524m (63 cents)
Keep in mind Euroz Bull Scenario is $1.05/sh (which we are on track to achieving the below) FFX finds additional ore at a higher grade than the Morila pit allowing production to exceed our forecast long term production average of ~160kozpa over 10 years. The gold price tracks above our LT price assumption. The Company is able to sell the Goulamina for +A$400m in cash to fast track development at Morila whilst strengthening the balance sheet
I actually think its Sprotts gold valuation plus Euroz lithium valuation is what we are looking at in the short term. (i.e $823m mkt cap (80ish cents)?
