It is very interesting no one is talking about the hinted suggestion that EMH may be diluted at the project level in Geomet .
Suggested , off takers to take a stake with prepayments , Also ERBD wont want any more shares in EMH , I would certainly think they too will want to be in at the project level . And they all will want a board seat to oversee their investment .
What does that mean , at least the share holder agreement in Geomet quantifies both partners will be diluted equally .
Now , when you get say two players that want to give you $100 mil each . How many shares do you give them ??????????
At the moment there will probably only be 100 shares in Geomet , 51 for CEZ and 49 for us . That doesn't sound like enough shares to go around ?????? The whole trick here is GEOMET will need to be independently Valued to asses what the $100 Mil each would be in terms of precentage of the whole value of the project . I am thinking we can reverse engineer a value and a percentage that we may give away . I am liking the 5% figure below , we dont want to give away too much .
Cash Input Geomet Valuation 1 $200,000,000 $1,000,000,000 20.00% 2 3 $200,000,000 $2,000,000,000 10.00% 4 5 $200,000,000 $3,000,000,000 6.67% 6 7 $200,000,000 $4,000,000,000 5.00% 8 9 $200,000,000 $5,000,000,000 4.00% 10 11 $200,000,000 $6,000,000,000 3.33% 12 13 $200,000,000 $7,000,000,000 2.86% 14 15 $200,000,000 $8,000,000,000 2.50% 16 17 $200,000,000 $9,000,000,000 2.22% 18 19 $200,000,000 $10,000,000,000 2.00%
But then hey PRESTO the project now has a valuation out side of any international broking platforms .
I wander how the share price will then perform in each international duristriction after this . We all know stockmarkets can get it all wrong . On the point of the offtake based on above , I would certainly be happy , to get the project further down the line ie CRMA Critical Raw Material Status etc to create that whole value in Geomet B4 an offtaker flashed some cash at us .
The higher the Geomet Value the less dilution . And then add Geomet will mostly be funded with loans , grants and others . EMH will not only get diluted by a small amount in Geomet , but will not also be diluted as EMH as we may not need any cash for capex .
The kicker here in my example above EMH will still own 46.5 % of the project valued at $1,860,000,000 Or $8.96 aud a share . Even halving the value it is still monumentous . Oh how the stock markets get it so wrong .
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20.0¢ |
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-0.010(4.76%) |
Mkt cap ! $41.48M |
Open | High | Low | Value | Volume |
20.0¢ | 20.0¢ | 20.0¢ | $485 | 2.424K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 8311 | 20.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
21.0¢ | 32519 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 8311 | 0.200 |
2 | 42599 | 0.195 |
3 | 65150 | 0.190 |
2 | 5560 | 0.185 |
1 | 15000 | 0.180 |
Price($) | Vol. | No. |
---|---|---|
0.210 | 32519 | 1 |
0.230 | 209 | 1 |
0.240 | 500 | 1 |
0.245 | 500 | 1 |
0.250 | 2500 | 2 |
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