Reminder of the recent Fosters research note of 25th June
Earnings and Valuation: • We estimate first revenues and earnings for CAY in FY24 from Minim Martap. We forecast NPAT of $11M in FY24e rising to $52M in FY28e as bauxite prices rise and Guinea supply growth subsides. • We value CAY at $0.32/share, based on 0.5x NPV10. We assume equity: debt funding of 50:50. However given the tier 1 asset, strategic/offtaker equity in project and/or CAY are also viable. Our unrisked NPV10 of CAY is $0.66/share.
CAY Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
